Crude dips on skepticism ahead of OPEC meeting
On Tuesday, crude prices sagged on doubts that crude producer cartel OPEC will be able to hammer out a meaningful production cut during a gathering on Wednesday aimed at suppressing a global supply overhang and also propping up crude prices.
International Brent crude oil futures were worth $47.99 per barrel, tumbling 0.5%, from their last close. American West Texas Intermediate crude futures sank 0.5% too, hitting $46.85 a barrel.
On Wednesday, the Organization of the Petroleum Exporting Countries will have a meeting in Vienna to discuss a planned output cut in an effort to tame overproduction, which has dogged markets and more than halved crude prices since 2014.
With a relatively high degree of uncertainty going into the last 24 hours before the long-awaited meeting, crude price volatility is supposed to be high enough.
There remains disagreement among OPEC-participants as for which producers need to cut and how much, and also a plan for non-OPEC oil giant Russia to participate has failed too.