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Oil sinks as OPEC mulls Iran supply cut exemption, tries to get Russia on board

Reuters  |  SINGAPORE 

By Gloystein

SINGAPORE (Reuters) - fell on Friday as OPEC discussed a potential exemption from cutting output for and as the club sought to get on board.

International Brent futures fell below $60 per barrel, trading at $59.53 per barrel at 0750 GMT, down 53 cents, or 0.9 percent from their last close.

U.S. Intermediate (WTI) crude futures were at $51.05 per barrel, down 44 cents, or 0.9 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.

There was also still discussion around seeking an exemption from any cuts amid U.S. sanctions which already reduced its exports, OPEC delegates told

OPEC also wants to get on board with cuts. wants to cut its by a maximum of 150,000 barrels per day (bpd) for the first three months of 2019, RIA agency cited a source as saying on Friday.

Analysts expect OPEC to cut more than Russia, but warn that a big cut will be needed to reverse recent price falls.

"Reversing the overwhelmingly bearish price sentiment will likely require a credible and cohesive message from the OPEC meeting. Even a 1 million bpd cut could lead to a 'sell the news' reaction in the short term," U.S. Jefferies said on Friday.

"If no agreement is reached, have significant downside," it added.


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 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. 13:25 IST