Oil prices last night fell as much as 5% after OPEC delayed the meeting that was scheduled to be this weekend without any clarification for the reason for this postponement. Prices were down around $3, but managed to pare most of the losses.
U.S. crude closed at $77.10 a barrel, fell $0.67 or 0.86%. Meanwhile, the international benchmark Brent crude dropped $0.49 or 0.59% to settle at $81.96 a barrel.
Several reports stated that the group ran into some trouble amid Saudi dissatisfaction with other members’ oil production levels.
Saudi Arabia was widely expected to extend a voluntary cut by one million barrels per day through the first quarter of next year to keep markets and prices in balance. However, some are speculating a possibility of Riyadh reversing the measure if its counterparts did not contribute enough to the supply reductions.
The meeting has been postponed to November 30.
Moreover, US domestic crude inventories rose by 8.7 million barrels for the week ending November 17. Meanwhile, finished gasoline supply declined by 469,000 barrels from the previous week, implying slower demand in the U.S.
Oil prices continued to edge lower in the morning of the Asian trading session on Thursday. Brent crude lost $1.04 or 1.27% to trade at $80.92 a barrel. Meanwhile, WTI fell $0.91 or 1.18% to $76.19 a barrel.
