Oil has been sliding since the last two years due to doubts about the OPEC meeting



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The increase in the number of US platforms and the continuing uncertainty over OPEC's strategy to extend supply cuts caused oil prices to fall after a week in which they reached their highest close in more than two years .

Futures fell to 2.4 Percentage in New York after rising 1.6 percent on Friday to the highest amount since June 2015. OPEC and Russia, partners in the oil cut-off agreement, have developed the scheme of an agreement for to extend the limits until the end of next year, according to people involved in the discussions But there are still doubts about the size of the reductions after the current agreement expires in March, as well as about the exit strategy which the group will adopt. Meanwhile, drillers targeting crude in the US UU They added nine platforms last week.

"What we are seeing is cold at the OPEC meeting," said Ashley Petersen, leading oil market badyst at Stratas Advisors in New York. "After more than three weeks of exuberance, investors get nervous, that will be the dominant driver regardless of the weekly fundamental data."

Oil rose 23 percent since early September on speculation by the Organization of the Petroleum Exporting Countries and its allies will prolong production cuts to drain a global surplus. OPEC and Russia are still giving crucial details for an extension, said the people involved in the talks last week. Russia said it wants the agreement to include a new language that ties the size of the curbs with the health of the oil market.

Click to see a TOPLive Q & A with oil strategist Julian Lee at 9 am New York time.

"Consensus is building that Russia may not want to have a situation where they are willing to restrict supply without qualification," Bart Melek, global head of commodities strategy at TD Securities in Toronto, said by telephone. "They do not want to move prices too high to encourage unconventional producers to produce."

Bloomberg, Javier Blas, discusses the prospects for the OPEC meeting.

(Source: Bloomberg)

West Texas Intermediate for January delivery at $ 58.11 per barrel on the New York Mercantile Exchange, after falling to an intraday low of $ 57.55. The news that Cushing, Okla., Crude inventories fell by 2 million barrels last week helped stimulate the mid-day rebound.

"That's almost the main reason why we're so close to $ 60 at WTI," Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Mbad., Said by telephone.

Still, concerns about Thursday's meeting in Vienna will continue to reduce crude, Lynch said. "There is a fear that stronger prices will generate changes in production quotas."

Read our OPEC Reality Check to see what is at stake for each producer

Brent for January delivery settled at $ 63.84 a barrel on the ICE Futures Europe stock exchange based in London , after rising 1.8 percent last week. The world benchmark crude traded at a premium of $ 5.73 to WTI.

Oil Market News:

  • Transcanada plans to resume service on its Keystone crude pipeline on November 28 at reduced rates, after closing the line on November 16 due to a leak in South Dakota.
  • Crude inventories in Cushing, Oklahoma, fell 2 million barrels in the week ended November 24, according to a forecast compiled by Bloomberg.
  • Iraq hit a couple of speed bumps as it prepares for 2018 oil sales, after making unprecedented moves to sell single loads this year in addition to supplies under long-term contracts.
  • OECD fuel inventories were 140 million barrels above the five-year average in October, down from a record of more than 380 million, according to the text of a speech delivered by the Secretary General on Monday. OPEC, Mohammad Barkindo.

– With the badistance of Ben Sharples and Grant Smith

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