Oil prices were seen extending losses on Thursday on speculation that OPEC will refrain from cutting productions as the 12-member group meets in Vienna.
The energy market in Europe was seen falling on Thursday as the Italian oil and gas company; Eni declined 1.22% to €16.65 per share, while in France, the oil giants Total was down 0.90% to €47.41 per share. In Spain, Respol fell 0.76% to trade at €18.28 per share and Royal Dutch Shell slid 0.80% to 2,347.50 pence in London.
Futures for the North American West Texas Intermediate (WTI) for January delivery fell 2.4% to $71.89 a barrel on the New York Mercantile Exchange at the time of writing, the lowest since Sept, 2010. The European benchmark Brent crude for January settlement declined 1.98% to $76.21 per barrel on the UK-based ICE Futures Europe exchange.
The Organization of Petroleum Exporting Countries members are gathering in Vienna to discuss the falling trend of the commodity and whether to cut the crude production to boost crude prices.
Venezuela is expected to propose an output cut at the meeting, according to Rafael Ramirez, the country’s OPEC representative. On Wednesday, Saudi Arabia’s representative and oil minister said the falling oil prices will stabilize and there’s no need for a cut in the commodity’s output.
Crude stockpiles in the US, the world’s biggest oil consumer, rose by 1.95 million barrels to 383 million in the week ended November 21, according to a report from the Energy Information Administration.
The report also showed that stockpiles at Cushing, Oklahoma, climbed by 1.3 million to 24.6 million. Gasoline inventories rose 1.83 million to 206.4 million, while distillate supplies, including heating oil and diesel, fell by 1.65 million to 113.1 million.
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