Brent Prices Fall Lower, OPEC Considers Cut
Brent crude oil approached a four-year low on Wednesday as the global supply glut outweighed the geopolitical factors threatening to cut supplies. The commodity traded at $81.22 at 7:45 GMT as investors continued to speculate about whether or not OPEC would implement a supply cut at its November meeting.
With prices falling even closer to $80, the cartel has been discussing a 500,000 barrel per day cut, something that would likely give Brent a boost. However, the group has been divided over the past few weeks as some members, like Saudi Arabia and Iran, have said they are comfortable accepting low prices for an extended period in order to gain market share. Most analysts expect that all of OPEC’s members will not be able to come to a firm decision, which will in turn keep the group from making any changes.
Related Link: Geopolitical Issues Weigh On Eurozone
Meanwhile, the conflict in Ukraine continued to escalate as Ukrainian nationalist forces tried to keep rebel fighters from taking over the Donetsk airport. Despite a peace treaty and ceasefire agreement, the region has seen heavy shelling as pro-Moscow separatists try to hold on to territory they believe belongs to them.
In Libya, some of the nation’s largest export terminals have been halted as protesters resume their demonstrations. CNBC reported that the nation’s Hariga port was shut down, removing 120,000 barrels per day from the nation’s exports as a dispute over wages continued. Libyan officials have said they are in talks to resolve the issue, but many worry that the government is losing control of the situation.
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