American Expatriate Costa Rica

Oil continues to fall as threat of increased production rises

On Thrusday, oil prices ended the day on a low note in New York, since the markets are once again concerned with the oversupply that had been eclipsed for several days by the US elections.

A barrel of “light sweet crude” (WTI) to be delivered in December lost 61 cents, reaching $ 44.66 on the New York market.

In London, a barrel of Brent North Sea to be delivered in January fell 52 cents to settle at $ 45.84.

The market left the volatility induced by the choice of Donald Trump,”

said Bart Melek of TD Securities.

We are concerned about the possible lack of consensus in the Organization of Petroleum Exporting Countries (OPEC) to reduce production,”

added Maelek.

The 14 members of the OPEP agreed in late September to reduce supply by allocating new quotas for each country. The definitive agreement is under negotiation and should be formalized on November 30th in Vienna.

The International Energy Agency (IEA) threw a bucket of cold water on the market by estimating on Thursday that countries outside OPEC will produce more than expected next year. If that happens and OPEC does not reduce supply, it will continue to make surplus as it has done since 2014.

crhoy.com