Brent crude oil prices slid below $100 on Tuesday, causing concern for some OPEC nations. The commodity traded at $99.99 at 10:30 GMT as market oversupply and worries about the global economy weighed.
On Thursday, Gulf Arab oil ministers are set to meet in Kuwait where they will likely discuss the commodity’s recent dip to a 16-month low.
Investors see OPEC considering a cut to production if prices remain below $100 as most of the organization’s members require prices at $100 or higher in order to balance their budgets.
With so many geopolitical problems going on around the globe, Saudi Arabia has kept its output high as a precaution should an interruption arise. Reuters reported that many analysts see Brent rising sharply in the next few days as problems in Libya and Iraq look likely to affect supplies.
On Monday, Iraq was able to form a new, more inclusive government which the White House has hailed as an important first step in combating radical groups like ISIS. Meanwhile, Libya continued to ramp up its oil production, reaching 740,000 barrels per day on Monday. However, fighting in and around Tripoli has many nervous that the country’s reopening of export terminals could be short lived.
Moving forward, investors will be focused on U.S. inventory data, due out later in the day.
Analysts have forecast that the number one oil consuming nation’s crude stocks declined by 1.5 million barrels last week as the U.S. economy continued to make strides toward recovery.
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