Oil is cheaper due to uncertainty ahead of the OPEC meeting in Vienna

MOSCOW, 22 Nov — RIA Novosti/Prime. World oil prices on Tuesday falling because of uncertainty of investors about the possible outcome of the meeting of OPEC member countries and non-organization of States in Vienna next week, according to the auction.

As at 20.40 GMT the price of January futures for North sea petroleum mix of mark Brent has decreased on 1,06% — to 48.38 dollars a barrel. The price of January futures for WTI decreased 1.80% to 47.37 percent.

In late September, OPEC’s informal meeting in Algeria agreed on a restriction of output in the range of 32.5-33 million barrels of oil per day, but specific limits for each of the countries of the organization while there is no agreement. The final decision on the agreement should be made on the official OPEC meeting on November 30 in Vienna. The organization relies on adherence to the measures to stabilize the market and several other oil-producing countries, especially Russia.

On Tuesday the price of oil rose on positive sentiment regarding the upcoming OPEC meeting in Vienna. Later, however, market participants began to reassess the comments of the representatives of the countries-participants of the meeting that led to the reduction of “black gold”.

Commerzbank predicts that Saudi Arabia and other Gulf countries may cut production if other OPEC members will increase production. So, for example, Iraq could increase the supply.

The Bank warns that guarantees that the transaction will be concluded, no. “Any new agreement to reduce or freeze the level of oil production should not be expected from a meeting of OPEC”, — the newspaper cites The Wall Street Journal the analysts of the Bank.