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Oil prices fall below US$60 a barrel in Asia after jumping on OPEC concerns

Oil prices fall below US$60 a barrel in Asia after jumping on OPEC concerns

Oil prices fell below US$60 a barrel in thin trading Friday on doubt that OPEC would cut output to lift crude prices.
"The market is not expecting any production cuts at the moment," said Tetsu Emori, an analyst with Mitsui Bussan Futures in Tokyo. "The market sentiment is not really confident. Some oil producing countries have already cut production but the market hasn't really reacted."
Light, sweet crude for November delivery dropped 40 cents to US$59.63 a barrel in Asian electronic trading on the New York Mercantile Exchange, midmorning in Singapore.
The contract rose 62 cents Thursday to settle at US$60.03 a barrel on expectations that OPEC would soon cut its output, though a representative of Saudi Arabia denied there was a deal to reduce production.
Heating oil futures lost 0.25 cent to US$1.6895 a gallon (3.8 liters) while gasoline prices dropped 0.25 cent to US$1.514 a gallon. Natural gas futures gained 9.1 cents to US$6.389 per 1,000 cubic feet.
The president of the 11-member Organization of Petroleum Exporting Countries, Edmund Daukoru, did not clearly confirm or deny a slew of reports attributed to anonymous sources from member countries saying the cartel plans to trim its daily production by 1 million barrels.
A spokesman for Saudi Arabia's U.S. ambassador said there is no plan in Riyadh to crimp supplies in order to prop up prices, however. "A decision hasn't been made," Nail al-Jubeir told The Associated Press in a telephone interview.
Traders said they doubted whether all OPEC members would go ahead with any informal agreement intended to stem a 24 percent decline in prices since mid-July.
Daukoru, who is also Nigeria's oil minister, said the group was considering holding an emergency meeting before its scheduled Dec. 14 conference.
Dow Jones Newswires, citing an OPEC governor, said the cartel's ministers have agreed to cut output by 1 million barrels a day, including 300,000 barrels a day from Saudi Arabia.


Updated : 2021-04-13 16:25 GMT+08:00