TODAY.AZ / Business

Crude prices decline pending OPEC+ meeting

28 November 2017 [17:45] - TODAY.AZ

By Azernews

By Sara Israfilbayova

World oil prices decline on Tuesday amid uncertainty of the fate of the OPEC+ deal, as well as on industry news from the U.S.

Brent crude futures are at $63.2 per barrel, down 0.27 percent, while U.S. West Texas Intermediate (WTI) crude futures are down 0.53 percent at $57.8 per barrel, according to RIA Novosti.

Traders wait for the meeting of oil and energy ministers of all 24 states of the agreement on reducing the production of "black gold".

The meeting of OPEC+ will be held on November 30 in Vienna.

A meeting of the Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC), which includes Saudi Arabia, Venezuela, Kuwait, Algeria, Oman and Russia, will take place in Vienna on November 29.

Russian Energy Minister Alexander Novak said on November 27 that almost all members of the deal are in favor of extending it. Nevertheless, traders remain cautious, as there is no certainty whether the agreement will eventually be extended at the meeting in Vienna and for how long.

Goldman Sachs said the outcome of the meeting was “much more uncertain than usual”, adding that the market faced downside risks.

“We view risks to oil prices as skewed to downside this week as we believe current prices, timespreads and positioning already reflect a high probability of a nine-month extension,” the bank said.

Crude prices also remain under pressure from reports on the restoration of the Keystone pipeline of TransCanada after repairs. Previously, TransCanada closed part of the Keystone pipeline after the leakage of 5,000 barrels of oil in the U.S. state of South Dakota. The leak was detected after the signal of a drop in pressure. Later the company reported that they collected after the accident 44,400 gallons (about 1,000 barrels) of oil.

OPEC and other major oil producers such as Russia, Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Sudan, and South Sudan reached an agreement in December 2016 to remove 1.8 million barrels a day from the market. 

OPEC and its partners decided to extend its production cuts till March 2018 in Vienna on May 25, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.


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