LONDON: Global oil prices diverged yesterday in a subdued start to a week that will be centred on the OPEC cartel’s output meeting, dealers said. In late afternoon deals, Brent North Sea crude for delivery in January fell just two cents to $80.34 a barrel.
US benchmark West Texas Intermediate for January added 25 cents to $76.76 per barrel. The Organization of the Petroleum Exporting Countries (OPEC) will hold one of its most significant meetings in recent years on Thursday, with members under pressure to address slumping prices and protect their precious revenues.
The oil market has tumbled 30 percent since June on the back of plentiful supplies, the stronger dollar, and growing doubts about both global demand and economic growth.Crude futures had rallied Friday on China’s surprise interest rate cuts and rising expectations that the 12-nation Opec cartel could decide to reduce its collective production ceiling.
“Activity (on Monday) looks to extend the positive moves seen towards the end of last week as investors position themselves ahead of OPEC’s meeting in Vienna later on this week,” said analyst Kash Kamal. “Prices have found support around Friday’s close and with speculation among investors that Iranian oil minister Bijan Namdar Zanganeh may propose a 1.0 million barrels per day production cut to Opec members to Saudi Arabia’s oil minister, Ali Al Naimi.AFP
