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Oil Prices Tumble in RunUp to OPEC Meeting

Oil rates continued to drop on Friday, on fresh doubts that Sino-U.S. trade agreement could be not signed  after Beijing warned Washington previous day that it would take countermoves in response to U.S. legislation intervention into China’s area of responsibility with regard to the Hong Kong’s protests. 

oil tumbles ahead opec meetingPhoto: Flickr

Oil prices went down also amid muted trading after Thanksgiving in the U.S., while investors are waiting for a meeting of OPEC and partners, who can extend the supply-cut agreement to support the market.

Brent futures for delivery in February tumbled by 1.41 percent, to $62,36 per barrel, while U.S. WTI light oil benchmark eased by 1.46 percent, to $57,26 per barrel at 14.15 GMT.

The latest EIA report, showing U.S. crude inventories rose unexpectedly by 1.572 million barrels in the previous week, with oil production jumping to a record level of 12.9 million bpd also weighed on crude market.

However, expectations that OPEC and its allies will continue its supply cuts expansion until mid-2020 put a lid on prices.