Crude prices drop on renewed doubts on OPEC-led output cut
On Wednesday, crude prices sagged during Asia trade, thus reversing earlier revenues, as doubts re-emerged over whether OPEC would agree to an oil output cut at a ministerial gathering next week.
A strong greenback, trading close to the 13 1/2-year peak reached the previous week, also applied pressure on prices amid thin trading ahead of the American Thanksgiving holiday on Thursday.
International Brent crude futures sank 8%, hitting $49.04 a barrel, having climbed to $49.42 earlier in Wednesday's trading session on optimism OPEC would agree to a production cut.
Reuters commodities analyst Wang Tao told that Brent could ascend to $49.85 per barrel. The given level is marked by some technical resistance factors.
Meanwhile, US West Texas Intermediate crude futures sagged 8% to $47.95 a barrel, having risen to $48.30 earlier on Wednesday.
With crude output among OPEC members running at approximately 34 million barrels a day, the energy market is suddenly looking at considerable cuts to get back to the level of about 32 million to 33 million barrels a day when output curbs were first mooted earlier this year.