Oil Prices Fall Ahead of OPEC Meeting
Oil prices fell in sluggish trading Monday amid mixed signals from OPEC officials about the possibility of production cuts when the organization meets later this week.
Crude oil dropped 33 cents to $61.70 a barrel.
Some OPEC officials have been pressing in recent days for a cut in output on top of the production cut of 1.2 million barrels a day approved in October, while others have indicated that with prices above US$60 a barrel, the cartel was likely to refrain from cutting output at the meeting.
Vienna‘s PVM Oil Associates also suggested that a weaker dollar could add to sentiment for production increases because crude is sold in dollars but much of the consumer goods purchased by OPEC nations is denominated in euros.
Expectations of milder temperatures in the United States also weighed on prices. Temperatures in the Northeast, the nation's largest heating oil market, were expected to moderate this week, with above-normal temperatures through most of the nation, according to the National Weather Service .
Crude oil dropped 33 cents to $61.70 a barrel.
Some OPEC officials have been pressing in recent days for a cut in output on top of the production cut of 1.2 million barrels a day approved in October, while others have indicated that with prices above US$60 a barrel, the cartel was likely to refrain from cutting output at the meeting.
Vienna‘s PVM Oil Associates also suggested that a weaker dollar could add to sentiment for production increases because crude is sold in dollars but much of the consumer goods purchased by OPEC nations is denominated in euros.
Expectations of milder temperatures in the United States also weighed on prices. Temperatures in the Northeast, the nation's largest heating oil market, were expected to moderate this week, with above-normal temperatures through most of the nation, according to the National Weather Service .
posted by Ottawa Gas Prices | 5:08 AM
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