Oil Moves Lower After OPEC Deal Could Last Only 6 Months

Oil futures moved lower Tuesday as a report of record-high production from OPEC in September fed a pullback in prices following a rally a day earlier.

Prices found support Monday on news that Russia planned to back a proposal from the Organization of the Petroleum Exporting Countries to reduce crude output.

November West Texas Intermediate crude fell 17 cents, or 0.3%, to $51.18 a barrel on the New York Mercantile Exchange. The December contract for global crude benchmark Brent was down 22 cents, or 0.4%, at $52.92 a barrel on the ICE Futures exchange in London.

On Tuesday, the Paris-based International Energy Agency said OPEC boosted its output by 160,000 barrels a day to a record 33.64 million barrels a day in September. At a meeting in Algiers last month, OPEC agreed to bring its output down to a maximum of 33 million barrels a day but also said it would work out details of the tentative proposal at the next OPEC group meeting Nov. 30.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza