Monday, December 7, 2015

MARKET WATCH: NYMEX, Brent crude prices fall after OPEC meeting

From:  Market Watch

OGJ Special Projects Editor*The January contract for light, sweet crude settled below $40/bbl on the New York market Dec. 4 after members of the Organization of Petroleum Exporting Countries acknowledged they would accommodate current production, which is more than 1 million b/d over the quota.

Barclays analysts said the lack of guidance on a production quota underlines the discord among OPEC members.

“The high degree of uncertainty about supply levels for next year from its members (with Iran expected to boost output, and Libyan output fluctuating) adds further stress on its previous target of 30 million b/d,” Barclays analysts said in a research note.

OPEC production for October was estimated at 31.7 million b/d, the International Energy Agency reported in its November Oil Market Report.


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