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Oil falls as OPEC ties supply cut to Russia; Moscow said to back limited reduction

Reuters  |  SINGAPORE 

By Gloystein

SINGAPORE (Reuters) - prices slid on Friday, pulled down by OPEC's move to delay a final decision on output cuts as its awaits support from Russia, which is reported to not want to reduce its output by more than 150,000 barrels per day (bpd).

International Brent futures fell below $60 per barrel early in the session, trading at $59.49 per barrel at 0643 GMT, down 57 cents, or 1 percent from their last close.

U.S. Intermediate (WTI) crude futures were at $50.98 per barrel, down 52 cents, or 1 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.

wants to cut its output by a maximum of 150,000 bpd for the first three months of 2019, RIA agency cited a source as saying on Friday.

Analysts expect OPEC to cut more than

"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.

GRAPHIC: OPEC, and U.S. production https://tmsnrt.rs/2QdhkVc

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, Russia 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 crude oil and fuel than it imported for the first time on records going back to 1973, according to data released on Thursday.

GRAPHIC: U.S. turns into net exporter of oil https://tmsnrt.rs/2QiW7cA

(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. 12:37 IST
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