20/11/2019
Oil fell more than a dollar a barrel on Tuesday on fears of a global supply glut and the lack of progress towards the settlement of the China-US trade dispute, which cast a shadow on the demand outlook.
Brent crude futures fell $ 1.53, or 2.5 percent, to settle at $ 60.91 a barrel. Lost US crude contracts for West Texas Intermediate to $ 1.84, or 3.2 percent, to close at $ 55.21 a barrel.
Brent has risen about 15 percent this year, buoyed by an agreement by the Organization of the Petroleum Exporting Countries and allies including Russia - in what is known as the OPEC + group - to cut production by 1.2 million barrels per day from January 1.
But three sources said Russia was unlikely to agree to deepen oil production cuts at a meeting with other exporters next month.
OPEC sources said that the organization and its allies would consider deepening cuts crude supply when they meet in December due to fears of weak demand growth in 2020.
An informed source said: "We expect tough talks in December. Russia will certainly agree to (deepen) cuts in the winter."
The news prompted Russia's position in oil prices to fall with investors feared potential supply glut. But Jim Ritterbusch, president of Ritterbusch and Associates, seemed to despise the concerns of those.
"We will reiterate that Brent pricing at $ 60 or below will increase the chances of a further output cut from the next OPEC talks, which would allow to erase what appears to be a modest supply glut," he said.
