Oil price declines as OPEC meeting approachesNews // November 24, 2015
At the beginning of the last week of November, the oil price was falling again, with Brent crude falling by 2 per cent to US$43.7 per barrel and WTI shedding more than 3 per cent to reach US$40.6 per barrel.
Commerzbank said that, in view of the ongoing price weakness, pressure is mounting on the Organization Petroleum Exporting Countries (OPEC), whose members will be gathering for their scheduled meeting.
Ahead of the meeting, Iran and Venezuela were attempting to put pressure on other OPEC countries so that prices do not fall any further. Venezuela’s oil minister believes that prices will fall to the mid-US$20s level if production isn’t cut.
Reports suggest that Venezuela is urging OPEC countries to adopt an ‘equilibrium price’ that covers the cost of new investment in production capacity; it is said that this equilibrium price could be in the order of US$88/barrel. OPEC ministers were due to meet on 4 December to discuss output policy amid a global supply glut.