Brent crude and WTI brands fell by five per cent in the course of trading on 6 December demonstrate ICE London stock exchange data. This happened against the backdrop of negotiations on the extension of the OPEC + agreement, which is being hampered by Russia and Iran.
During the trading session, the Brent mark barrel fell from $ 61.94 to $ 58.47, while the WTI mark fell from $ 53.28 to $ 50.3. In both cases, the fall exceeded five percent.
At the time of publication, Brent barrel was trading at $ 59.67, WTI – at $ 51.23.
Shortly before the Saudi Minister of Energy, Khalid al-Falih, said that participants in the OPEC + deal to reduce production had not yet reached an agreement to extend the agreement for 2019. “In my personal conviction, no one should make exceptions. But we will listen to everyone in order to reach a consensus on this issue, ”said the minister, quoted by Interfax .
Earlier, on December 6, Bloomberg announced that the final parameters of the new deal largely depend on Russia and its president, Vladimir Putin . So far, Moscow agrees to cut production by 140-150 thousand barrels per day, while OPEC insists on 300 thousand. In this case, the total reduction will be one million barrels per day.
Another obstacle to the conclusion of an agreement could be Iran, which, against the background of US sanctions, demands an exception for itself. “Yes, we expect to get exemption (from the limitation of oil production). Iran should be relieved of all obligations to limit the levels of oil production while illegal sanctions are in effect, ”said Iranian Oil Minister Bijan Namdar Zangane, quoted by Interfax .