Brent Falls Below $80 With OPEC Meeting On The Horizon
Brent crude oil slid below $80 on Tuesday with the OPEC meeting on the horizon and World Powers and Iran unable to make an agreement on Monday. The commodity traded at $79.41 at 7:50 GMT as investors speculated that the global supply glut would continue to grow.
After days of warnings from negotiators in Vienna, talks between Iran and world powers over the nation’s nuclear capabilities were unable to meet Monday’s deadline. While Iran argues that its nuclear development program is being used for energy, international leaders are skeptical and worry that the country will build an atomic bomb. Bloomberg reported that with both sides still deeply divided on several key issues, representatives from the United States, China, France, Germany, Russia, the U.K., Iran and the EU all agreed to push the deadline for a long-term deal back to July 1.
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With the nuclear talks in Vienna on pause for the moment, investors have shifted their full focus to OPEC’s annual meeting, set to take place on Thursday. The cartel has been struggling with division among its members in the weeks leading up to the meeting as the member nations have differing opinions on how to deal with the commodity’s falling prices.
Several of the group’s members are calling for a cut to output in order to boost prices, while others are comfortable with accepting the current prices and allowing the market to correct itself. Many believe the group will be unable to come to a cohesive decision, which will lead to the cartel doing nothing. Analysts see Brent continuing to free fall if no cut is made, with some forecasting prices as low as $60 per barrel.
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