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Hopes of a production freeze dim, pulling down oil prices

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By Euronews
Hopes of a production freeze dim, pulling down oil prices

<p>Oil prices have slipped amid fading hopes of an agreement to limit production. </p> <p>The benchmark Brent crude is hovering around $49 dollars a barrel.</p> <p>Despite the market being oversupplied, prices rose more than 20 percent in the first three weeks of August.</p> <p>That followed talk of a potential deal by oil exporters to freeze the amount they are pumping at current levels to try to support prices.</p> <p>Hopes of an agreement have now been dampened and industry experts said even if it happened, the effect on prices would be minimal. </p> <p>Members of the Organization of the Petroleum Exporting Countries will meet on the sidelines of the International Energy Forum, which brings producers and consumers together in Algeria on Sept. 26-28.</p> <p>US investment bank Jefferies said in a report: “We do not expect a production freeze – let alone a production cut – from the <span class="caps">OPEC</span> meeting.”</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Reports find price is not right for <span class="caps">OPEC</span> production freeze <a href="https://t.co/IZ8KacYTNj">https://t.co/IZ8KacYTNj</a> via <a href="https://twitter.com/CrudeOilPrices"><code>crudeoilprices</a> <a href="https://twitter.com/petromatrix"></code>petromatrix</a></p>— petromatrix (@petromatrix) <a href="https://twitter.com/petromatrix/status/768468583953240064">August 24, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p>The glut has pulled down crude prices from over $100 a barrel in 2014 to their current levels, below $50.</p> <p>There is a lot of oil and distilled petroleum product in storage worldwide as demand weakens, particularly in China and elsewhere in Asia.</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Oil prices waver as disappointing U.S. inventory data fuel oversupply concerns <a href="https://t.co/1i6dRWyjGu">https://t.co/1i6dRWyjGu</a></p>— MarketWatch (@MarketWatch) <a href="https://twitter.com/MarketWatch/status/768711030709059584">August 25, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>