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Oil slumps to fresh 1-month low as doubts grow over OPEC deal

Published 10/31/2016, 09:36 AM
© Reuters.  Oil prices slump to fresh 1-month lows
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Investing.com - Oil prices added to overnight losses during North American hours on Monday, falling to a fresh one-month low amid mounting skepticism over the implementation of a planned deal by OPEC to limit production.

Crude oil for December delivery on the New York Mercantile Exchange touched an intraday low of $47.95 a barrel, a level not seen since October 3.

It was last at $47.99 by 9:35AM ET (13:35GMT), down 69 cents, or 1.42%, after slumping $1.02, or 2.05%, on Friday.

Elsewhere, Brent oil for January delivery on the ICE Futures Exchange in London shed 69 cents, or 1.32%, to $50.05 a barrel, after settling down 92 cents, or 1.78%, on Friday.

London-traded Brent prices slumped to $49.31 during the previous session, the lowest level since September 30, on lingering negative sentiment around the proposed production cuts by major oil producing nations.

Non-OPEC producers made no specific commitment on Saturday to join OPEC in limiting oil output levels to prop up prices, suggesting they wanted the oil producing group to solve its differences first.

On Friday, OPEC members failed to agree on how to put in place a global deal to limit production, following objections from Iran which has been reluctant to even freeze its output, sources said.

The 14-member oil group reached an agreement to cap output to a range of 32.5 million to 33.0 million barrels per day in talks held in Algeria in late September.

However, OPEC said it won’t finalize details on individual output quotas until its next official meeting in Vienna on November 30.

In September, the group’s production reached 33.4 million barrels a day.

The possibility that producers could walk away empty-handed from the November meeting looms large after Iraq, Iran, Nigeria and Libya all signaled they might not take part in the proposed production cut deal. Russia’s unclear stance is also fueling uncertainty.

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