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Oil drops as OPEC makes supply cut dependent on Russian support

Reuters  |  SINGAPORE 

By Gloystein

(Reuters) - Oil prices fell on Friday, pulled down by OPEC's decision to delay a final decision on output cuts, awaiting support from non-OPEC heavyweight

International Brent futures fell below $60 per barrel early in the session, trading at $59.50 per barrel at 0144 GMT, down 56 cents, or 0.9 percent from their last close.

U.S. Intermediate (WTI) crude futures were at $51.24 per barrel, down 25 cents, or 0.5 percent.

The declines came after crude slumped by almost 3 percent the previous day, with the (OPEC) ending a meeting at its headquarters in Vienna, Austria, on Thursday without announcing a decision to cut crude supply, instead preparing to debate the matter on Friday.

"OPEC has decided to meet Friday again...(as) remains the sticking point," said Stephen Innes, head of trading for Asia/Pacific at in

Analysts still expect some form of supply reduction to be decided.

"We are beginning to witness the outline of the next iteration of production cuts, with OPEC conforming to cut its own production by around 1 million barrels per day, with the cartel lobbying non-OPEC members to contribute more," Japanese said in a note.

SUPPLY SURGE, PRICE PLUNGE

Oil producers have been hit by a 30-percent plunge in crude prices since October as supply surges just as the demand outlook weakens amid a global economic slowdown.

from the world's biggest producers - OPEC, and the - has increased by 3.3 million bpd since the end of 2017, to 56.38 million bpd, meeting almost 60 percent of global consumption.

That increase alone is equivalent to the output of OPEC the

The surge is largely down to soaring U.S. production, which has jumped by 2.5 million bpd since early 2016 to a record 11.7 million bpd, making the the world's biggest

As a result, the last week exported more and fuel than it imported for the first time on records going back to 1973, according to data released on Thursday.

(Reporting by Gloystein; Editing by Joseph Radford)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 07 2018. 07:56 IST
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