Oil prices fall on uncertainty over OPEC output cuts, pipeline restart
Oil prices slipped in early Asian trade on Tuesday amid uncertainty over a possible extension of output cuts by major crude producers and expectations of higher supply as the Keystone pipeline restarts.
U.S. West Texas Intermediate (WTI) futures
U.S. crude touched $59.05 a barrel on Friday, the highest level since mid-2015, fuelled by the outage of the Keystone pipeline, one of Canada`s main crude export routes to the United States.
Amazon unveils smartphone deals with EMI starting at Rs 485: Check offers on Samsung Galaxy A05, Samsung Galaxy M34 5G, Redmi 12 5G Pastel and Redmi Note 12
CMF Neckband Pro, Buds with 50dB Hybrid ANC to be launched alongside Nothing Phone (2a) - Check Details
Shark Tank India Season 3: Starting business with Rs 50K after his father's NSE-listed company went bankrupt, this Mumbai entrepreneur gets 4-Shark deal
Mahtari Vandana Yojana: Govt scheme to provide Rs 12,000 financial aid to women — Check installment date and application status
But TransCanada Corp
Uncertainty over Russia`s determination to join with other major oil producers in extending crude production curbs beyond next March has weighed on oil markets.
Members of the Organization of the Petroleum Exporting Countries (OPEC) and other key producers, including Russia, will meet on Nov. 30 to discuss whether to continue with the cuts after they agreed last January to withhold 1.8 million bpd of output.
Russia`s economy was negatively affected in October by the ongoing curbs, which saw Moscow agree to cut output by 300,000 bpd, Economy Minister Maxim Oreshkin said on Nov. 23.
Goldman Sachs said the outcome of the meeting was "much more uncertain than usual", adding that the market faced downside risks.
"We view risks to oil prices as skewed to downside this week as we believe current prices, timespreads and positioning already reflect a high probability of a nine-month extension," the bank said.
Consultancy Wood Mackenzie said it looked as if producers had nearly concluded an agreement to extend cuts until the end of next year.
"(But) if the production cut agreement ends in March 2018, our forecast shows there would be a projected 2.4 million bpd year-on-year increase in world oil supply for 2018," Ann-Louise Hittle, vice president, macro oils, said in a note on Monday.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)