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Oil falls after OPEC delays output decision

Reuters  |  LONDON 

By Cooper

LONDON (Reuters) - Oil fell in trading on Thursday after OPEC ended a key meeting having made no decision on crude output, as it prepared to debate the matter with other exporters the next day.

The (OPEC) met in to decide its production policy in coordination with non-OPEC producers including Russia, and

An OPEC delegate said the organisation had agreed a tentative deal to cut but had not yet come up with a final figure.

Saudi said earlier that OPEC needed to come on board with any cuts. He said a final decision by OPEC and its allies was likely by Friday evening.

Expectations had been for a joint cut of between 1 and 1.4 million barrels per day (bpd). Falih said before the meeting that the "OPEC+" group would be happy with a cut of just 1 million bpd.

Brent crude futures were down $2.07 on the day to $59.49 a barrel by 1532 GMT, having hit a session low of $58.36, while U.S. futures fell $1.38 to $51.51 a barrel.

The two have lost 30 percent in value this quarter alone.

"The real impact of the meeting will be evident tomorrow following the release of the OPEC+ joint declaration," said Abhishek Kumar, at

"Countries participating in the agreement will have to cut their combined output by at least 1 million bpd from the October 2018 level in order to have a meaningful bullish effect on "

Led by Saudi Arabia, OPEC's has risen by 4.1 percent since mid-2018, to 33.31 million bpd.

"(OPEC) know how to handle markets. They might be talking it down and then delivering a sucker-punch a bit later, that could also be the outcome," said.

European equities hit their lowest in two years and commodity-sensitive currencies such as the Russian rouble fell sharply, in part because of the slide in the oil price, but also with the arrest of a top of Chinese in for extradition to the United States

The arrest of Huawei's Meng Wanzhouof, who is also the daughter of the firm's founder, triggered renewed fireworks just as and prepare for crucial trade negotiations.

said in its Global Outlook published on Thursday that "investors need to lower their expectations" and that "2019 should be a period of lower returns and higher volatility".

said it expected "the global economy to slow over the next several quarters" although it added that "not one major economy is near recession."

(Additional reporting by in LONDON and Henning Gloystein in SINGAPORE; Editing by Kirsten Donovan)

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

First Published: Thu, December 06 2018. 21:18 IST
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