• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

See More

Oil down ahead of Opec meeting

Dec 14 2011 10:18 AFP

Related Articles

Oil around $98 amid Europe woes

Oil mixed ahead of EU summit

Oil falls despite EU deal

Oil up ahead of EU summit

Oil prices slip in Asian trade

Oil up in Asia on Iranian tensions


Singapore - Oil was lower in Asia on Wednesday, dampened by worries that the eurozone debt crisis has showed no signs of easing, analysts said, while investors await the outcome of an Opec output-setting meeting.

New York's main contract, light sweet crude for January delivery, fell seven cents to $100.07 a barrel and Brent North Sea crude for January delivery was off 39 cents at $109.11.

"Broader macroeconomic concerns about the eurozone continued to drag oil prices lower," analysts from Barclays Capital said in a commentary.

"The key focus of the market currently is the Opec meeting in Vienna... where the group meets against a complex economic, fundamental and political backdrop.

"Oil market balances have softened since the previous meeting, and the geopolitical context has deepened."

Analysts widely expect the Organisation of the Petroleum Exporting Countries (Opec), which supplies a third of the world's crude, to maintain its official output target of 24.84 million barrels per day - where it has stood for almost three years.

Fatih Birol, chief economist with the International Energy Agency (IEA), said current oil prices would endanger the global economy, which is under strain from the eurozone debt crisis and sluggish US growth.

"I think oil prices are already in a danger zone for the global economic recovery and I hope that prices calm down to give space for the economy to recover in Europe but in other countries as well, especially in Asia, some oil importing nations," he said to the media in Singapore.

"It (the cost of oil) is already disrupting demand growth. It's not going to lead to a decline in demand but it slows down the demand growth."

But with the IEA estimating actual Opec production hit 30.68 million barrels of oil per day in November - the highest in more than three years - the cartel may decide to issue a statement promising stricter compliance with its quotas.

"We will have the meeting, and then we will decide" what to do regarding output quotas, Iran's oil minister Rostam Qasemi said on arriving in Vienna on Tuesday.

"Whatever the decision will be, it will be made all together," he added.

The cartel based in Vienna meets periodically to set production levels, hoping that its decisions result in favourable market oil prices for its 12 members.

opec  |  commodities  |  oil



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Top 10 richest musicians of all time

Check out the gallery to find out who they are!


Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote