Moscow. December 7. Oil prices continue to decline Monday, after Friday the Organization of countries-exporters of oil (OPEC) decided not to adhere to production quotas, Bloomberg reported.
The cost of the January futures for Brent crude on London’s ICE Futures exchange to 8:36 MSK fell $0,26 (0,60%) – to $42,74 per barrel. By the close of market on Friday, the contract price decreased by $0,84 (1,92%) to $43 per barrel.
Futures price for WTI crude oil for January in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time $0,36 (0,90%) to $39,61 per barrel. At the end of last session, the contract price fell to $1,11 (2,7%) to $39,97 per barrel.
At a regular meeting held on Friday in Vienna, OPEC announced that it would not comply with the established quotas and intends to maintain the actual level of production, amounting to about 31.5 million barrels a day.
Secretary General of the organization Abdalla El-Badri said during a press conference that the cartel is not ready to single-handedly balance the market. According to him, representatives of OPEC will also meet with the world’s largest oil producers outside the cartel, to arrive at a coordinated decision to reduce production.
“The market is so much oil that if OPEC agreed to reduce production, it just would give their market share to someone else,” says senior analyst at CMC Markets RIC Spooner.
OPEC’s decision aims to protect the interests of the cartel members, said the oil Minister of Iraq Adil Abd al-Mahdi. “We protect the interests of our countries, protect the interests of our organization, – he said. – Americans have no ceiling production, the Russians too, why it needs to be in OPEC?”