Brent Lower As OPEC Division Continues
Worries about the division between OPEC members remained a major driver of oil prices on Wednesday and drove Brent crude oil lower. The commodity traded at $78.73 at 8:45 GMT as investors kept an eye on the cartel’s debate over whether or not to cut supplies at next week’s meeting.
CNBC reported that data out on Wednesday showed that Saudi Arabian crude exports increased by 59,000 barrels per day in September, a sign that the nation may stand by its remarks that his kingdom is willing to accept the commodity’s low prices until the market corrects itself.
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However other members of the cartel are calling for a cut in output in order to boost prices. Many OPEC nations require prices to be above $100 in order to balance their budgets and desperately need to stop prices from falling lower. Without a move from OPEC, most analysts see the commodity continuing to fall on a lack of demand and growing supply.
Crude demand could rise due to unseasonably cold weather in the United States, where all 50 states saw temperatures at or below freezing on Tuesday. The early arrival of winter could give crude a boost; but if it persists it could keep Americans home on the upcoming shopping season.
Moving forward, investors will be watching for the Energy Information Administration’s report on U.S. oil inventories, due out later in the day. The data is expected to show that U.S. crude stocks fell by about 800,000 barrels in the week ending on October 14.
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