The Philadelphia Energy Solutions oil refinery owned by The Carlyle Group is seen at sunset in Philadelphia March 26, 2014.
A month later, all options indeed are still open, and there has not been unanimous talk from OPEC-member oil ministers or Russian Federation. U.S. light crude was 40 cents lower at $50.29. Ministers who will gather in Vienna appear to be at loggerheads over whether now is the time to talk about prolonging or deepening a production-cut agreement set to expire in March. “T$3 hings are subject to discussion”, one OPEC delegate said.
“Compliance looks to be a bit of an issue” if prices rise much from current levels, said John Kilduff, partner at Again Capital LLC in NY. The market’s “in wait-and-see mode now”.
Oil prices settled mixed Thursday as ministers from the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers are scheduled to meet in Vienna Friday.
Kuwaiti Oil Minister Essam al-Marzouq said on Thursday compliance with output cuts was improving and was above 100 percent.
We want to know what you think! Investors “will be trying to read into what they say”.
The West Texas Intermediate for November delivery decreased 0.14 USA dollar to settle at 50.55 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery added 0.14 dollar to close at 56.43 dollars a barrel on the London ICE Futures Exchange.
Brent crude oil was down 35 cents at $55.94 a barrel by 1355 GMT. The global benchmark crude traded at a premium of US$5.88 to WTI, the widest gap since 2015.
Crude oil prices rose in Asia on Wednesday as industry estimates on US inventories offered support, though official data is awaited and investors are also keeping an eye on the Federal Reserve’s policy review for economic growth cues. Crude production increased for a second week.
In May, OPEC and allied nations agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.8 million bpd agreed in November a year ago.