Oil prices dip ahead of Opec gathering
[NEW YORK] Oil prices finished a bit lower Monday ahead of an Opec meeting expected to maintain policies that have kept prices down.
US benchmark West Texas Intermediate for January delivery ended down six cents at US$41.71 a barrel on the New York Mercantile Exchange.
Brent North Sea crude for January delivery shed 25 cents to US$44.61 a barrel.
Friday's meeting of the Organisation of the Petroleum Exporting Countries, though eagerly anticipated, is generally expected to maintain the cartel's policy of keeping production elevated in order to press high-cost producers out of the market.
Daniel Holder, analyst at Schneider Electric, described Opec's "overproduction stance" as "firm" heading into the gathering.
"An Opec production cut might be welcome or even needed, but it's also unlikely," said Tim Evans, analyst at Citi Future.
"A split decision, with Saudi Arabia and its closest allies still insisting on battling for market share, remains the base case scenario, with an ongoing surplus as the result."
Oil prices have been in retreat from levels above US$100 a barrel since July 2014, with the decline accelerating after Opec's November 2014 meeting signaled the group would keep output high.
While analysts do not expect Opec to alter course, some said there is an outside chance of a surprise that could lift prices.
AFP
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Pricey coffee is here to stay as hoarding, heat hit Vietnam supply
Oil settles higher as weak US economic growth offset by supply concerns
India's Vedanta misses Q4 profit estimates on lower prices
BHP targets Anglo American in bid valuing miner at US$39 billion
China's Sinopec charts global expansion with refinery in rival India's backyard
Gold trades in tight range as market focuses on US economic data