Oil Declines as OPEC Resumes Talks in Hunt for Production Deal - Bloomberg

Oil Declines as OPEC Resumes Talks in Hunt for Production Deal - Bloomberg:

Oil extended losses near $51 a barrel after OPEC entered a second day of talks in an attempt to draw up a deal to cut output.

New York futures slipped as much as 1.7 percent, falling for a third session. Saudi Energy Minister Khalid Al-Falih said Thursday in Vienna that he isn’t confident of an agreement when the Organization of Petroleum Exporting Countries meets again with its allies on Friday. OPEC is discussing a proposal that would see the group reduce output by 650,000 barrels a day, with a further 350,000 barrel a day contribution from its allies, including Russia, delegates said.

Oil has plunged more than 30 percent from a four-year high in October as concern over oversupply was fueled by waivers given for some buyers of Iranian oil and growing crude inventories and production in the U.S. While Saudi Arabia’s energy minister said Wednesday that output cuts of 1 million barrels a day were adequate to balance the market, there’s still uncertainty over whether the amount would be enough to shift current bearish market sentiment and prop up prices.