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Crude prices drop below US$60 due to OPEC doubts

Commodities

World oil prices dropped back below US$60 per barrel yesterday with some analysts believing that the OPEC cartel was unlikely to hold an emergency meeting to consider production cuts.
New York's main contract, light sweet crude for delivery in November, declined US$0.21 cents to US$59.82 per barrel in electronic deals before the official opening of the U.S. market.
In London, Brent North Sea crude for November delivery lost US$0.23 to US$59.77 per barrel in electronic trading.
"On one hand, there seems to be talk of cutting production, but on the other, many think of it as a rumor," said Tetsu Emori, the chief commodities strategist for Mitsui Bussan Futures in Tokyo.
"I don't think there will be an emergency meeting as I think that the OPEC members are happy as long as the oil prices stay in the 50 (dollar levels)."
Crude futures had rallied close to US$61 on Thursday after OPEC president Edmund Daukoru said that the Organization of the Petroleum Exporting Countries might hold an emergency meeting on whether to slash output.
"We are toying with the possibility of having an emergency meeting," Daukoru, who is also Nigerian Oil Minister, had told AFP.
Meanwhile in Algiers, the Algerian press agency APS quoted an "informed source" who said the meeting would take place on October 18-19 in Vienna.
However, an OPEC spokesman denied that was the case.
"There's been no date set for an emergency meeting," spokesman Tareq Amin told AFP on Friday.
Meanwhile Saudi Arabia would not oppose an emergency output meet and might agree to an output reduction, according to the London-based Arab newspaper Al-Hayat, which cited an unnamed senior OPEC official.
Saudi Arabia, the biggest member of the powerful 11-nation cartel, could cut its output by 300,000 barrels per day, according to the report.


Updated : 2021-05-19 08:51 GMT+08:00