SINGAPORE: Oil fell more than a dollar on Monday, towards $53 a barrel, after producer cartel OPEC decided to delay a decision on a third supply cut to its next meeting later in December as economic woes cripple oil demand.
Gulf producers want to see strict compliance with recent output curbs of 2 million barrels per day (bpd) before considering further cuts when the Organization of the Petroleum Exporting Countries (OPEC) meets in Algeria on Dec. 17.
U.S. light crude for January delivery fell 96 cents to $53.47 a barrel, after having dipped below $53 earlier. Oil settled down 1 cent at $54.43, against its Wednesday settlement in thin trading in a shortened, post-Thanks giving holiday session on Friday.
London Brent crude slid $1.04 to $52.45. “We certainly weren’t surprised with OPEC’s decision not to cut at the Cairo meeting. However, there will most likely be repercussions and we fully expect the market to test the $50 level again,” said Jonathan Kornafel, Asia director of Hudson Capital Energy.
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