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Oil prices accelerated the drop due to the uncertainty of the OPEC deal prospects

Black gold is cheaper during the second session in a row due to uncertainty about the outcome of the upcoming meeting of OPEC states this week.

  • The cost of January futures for Brent crude on the London Stock Exchange ICE Futures fell by $0.69 (1.08%) to $63.15 per barrel by the middle of the day.
  • The price of WTI futures for January on electronic trading in the New York Mercantile Exchange (NYMEX) fell by $0.6 (1.03%) to $57.51 per barrel by that time.

The main event of the current week for the oil market will be a meeting of representatives of oil-producing states, including Russia, in Vienna on Thursday. The meeting will discuss the issue of extending the deal to reduce oil production. World commodity traders expect that during the conference a decision will be made to extend the deal from the end of March to the end of 2018.

Meanwhile, the Financial Times writes that recently there are signals that Russia, one of the largest oil producers and the locomotive of the deal on the part of non-OPEC countries, doubts the need to extend restrictions, fearing that the price of over $60 per barrel may cause an increase in oil production from competitors.

Goldman Sachs experts note that there are big risks that if the OPEC decision disappoints the market participants, and any decision, other than extending the agreement by the end of 2018, will be perceived as disappointing - oil prices may fall sharply.

Since June, quotes have jumped by 40% and are at their highest level since 2015.