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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 as the market discounted hints that OPEC would curb production to boost 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 25 cents to US$59.78 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe.
On London's ICE Futures exchange, November Brent crude was down 15 cents at US$59.85 a barrel.
Heating oil futures fell 0.75 cent to US$1.6845 a gallon while unleaded gasoline was down 1.15 cents to US$1.5135 a gallon. Natural gas futures gained 6.2 cents to US$6.360 per 1,000 cubic feet.
Prices had risen Thursday following reports that the 11-member Organization of Petroleum Exporting Countries was planning to trim its daily production by 1 million barrels.
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.
Credit Suisse said in a research note Friday that it expected oil prices to stay below US$70 for the next three or four years as spare capacity builds up within OPEC.
"We believe this resolution process will likely take several years and will entail a period of widely fluctuating prices in the US$50-US$70 range," the note said. "We also note that the bulk of industry spare capacity, as has always been the case, will lie within OPEC countries, with attendant political and policy risks."


Updated : 2021-03-05 17:55 GMT+08:00