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Oil tumbles on doubts over OPEC production cut

Tuesday, November 29, 2016 - 01:17

Oil prices have fallen almost 4 percent on signs leading oil exporters in OPEC were struggling to agree on a deal to cut production to reduce global oversupply. As Laura Frykberg reports, Brent saw the biggest daily percentage decline since early September.

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Another dip in oil prices. As the OPEC stalemate over cutting supply continues. U.S. Crude fell 3.8 percent, while Brent Futures was down 3.7. Its biggest daily percentage fall in months. SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "Saudi Arabia keep talking up a deal but then recently saying that a deal is not necessary, or doesn't have to happen. Iran and Iraq are supporting a deal but don't want to take part." OPEC leaders gather again on Wednesday. Crucially - without Russia. Or big shale producer - the U.S. Which some say is a major part of the problem. SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "While the lower oil prices over the last eighteen months has squeezed some of the higher cost producers out of the US shale industry, there has been a lot happening in that time to bring costs down, and now we are seeing US oil rigs coming back online, and it looks like that will start creeping up again and this imbalance is only going to get worse." Wednesday's meeting is one of many held by OPEC over the past few months. All of which made little progress. Many analysts says they doubt this one will be any different.

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Oil tumbles on doubts over OPEC production cut

Tuesday, November 29, 2016 - 01:17