Crude prices sag on OPEC squabbles ahead of planned output cut
On Tuesday, crude prices sank early over disagreement within producer cartel OPEC on who needs to cut now and how much output in a planned coordinated reduction to spur prices.
International Brent crude futures were worth $51.38 a barrel, tumbling 8 cents from the last close. US West Texas Intermediate crude futures dropped 5 cents, reaching $50.47 a barrel.
Iraq's oil minister Jabar Ali al-Luaibi told that the second-largest producer in the Organization of the Petroleum Exporting Countries was eager to get exempt from production curbs as it required more money to fight Islamic State militants.
Crude prices labored under the weight of various OPEC members looking for exemption from the output cut agreement, as some financial analysts stressed on Tuesday.
Until there’s more clarity on the planned production cut, which OPEC expects to be coordinated with non-members, including Russia, experts told crude prices would probably remain range-bound - but volatile - around present levels.