Oil Settles Below The $50 per Barrel Mark
Oil plunged more than 9 percent on Monday settling below $50 a barrel on the news that OPEC deferred a decision on making a supply cut during their weekend meeting in Cairo, Egypt.
U.S. light, sweet crude for January delivery traded down $5.15, or 9.46 percent, to settle at $49.28 a barrel. London Brent crude fell $5.41 to $48.08 a barrel.
The divisions among OPEC member nations have become even more apparent. The secretary general of OPEC said that the cartel is poised to cut production by a significant amount when the group next meets Dec. 17 in Algeria.
“We are all geared towards a cut in Algeria,” Abdullah al-Badri told a news conference in Tehran, two days after the group’s meeting in Cairo.
“The market is oversupplied because we are seeing stocks as very high, about 55 to 56 days,” he told reporters earlier.
However, Saudi Arabian Oil Minister Ali al-Naimi told Saudi-owned al-Hayat newspaper that OPEC would not need to make a further cut in oil supply when it meets in Algeria if producers comply with previous curbs and fuel stocks decline.