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Again oil prices drop as OPEC members split

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Again oil prices drop as OPEC members split

The much awaited meeting between OPEC members and non members of the oil producing cartel has led to another bout of oil price loss, making it the second time in a month.

Data from the Statistics Department of OPEC released on Tuesday indicated that Brent Oil sold at $47.61 as against $48.17 a barrel on Monday, hitting a one-month low after the much publicised meeting with members and non member countries of the Organisation in Vienna.

It was gathered that Brazil and Russia, non OPEC countries took what observers regarded as a hard stance on the issue of cuts in production and supply, aimed at sustaining the increase that was witnessed in the international oil market in the early weeks of October 2016.

The face off reached its climax when the Venezuela-headed committee tabled the framework for implementation of a deal agreed in September to reduce the volume of inventory in the international market.

The only agreed term at the meeting, said a source was the rescheduled OPEC meeting on November 30 to pave way for another round of an inclusive meeting before 2016.

But OPEC members split in fashion following objections from Iran, which has been reluctant to even freeze its output as global benchmark, Brent was Monday down $1.50 the lowest since September 29.

Global oil prices have risen by as much as 13 per cent, encouraging a recovery in the industry after OPEC announced on September 27 a production cut to boost prices after a slump that began mid-2014.

OPEC had not specified how much each individual member should cut, saying that will be finalised at the November 30 meeting.

However, non-member Russia had agreed to cooperate, but a draft federal budget showed it expects to increase its output by 0.7 per cent next year and 0.9 percent in 2018.

By Emma Eke….

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