Oil prices are tumbling after headlines crossing the wires noting there are obstacles to an OPEC production cut.
WTI crude, the US benchmark, is down by 2.4% at $48.64 per barrel, while Brent crude oil, the international benchmark, is down by 2.2% at $49.50 per dollar as of 2:04 p.m. ET.
The Dow Jones wires reported that Iraq and Iran “refuse” to freeze output, which would throw a wrench into OPEC’s planned production limit.
*Iraq, Iran Refuse to freeze output as OPEC technical meeting in deadlock: Sources @WSJ
— Georgi Kantchev (@georgikantchev) October 28, 2016
Back in late September, the cartel reached an agreement at informal talks in Algeriato limit its production at its November policy meeting to a range of 32.5 million to 33 million barrels a day, down from today’s estimated level of 33.24 million barrels a day.
Some analysts have expressed doubts about this planned agreement.
- Markets Insider