Oil prices declined 3 percent on Tuesday on doubts that a deal will be reached by OPEC to cut oil production to reduce the global over-supply and to lift up prices.
The Organization of Petroleum Exporting Countries will meet in Vienna on Wednesday, supposedly to agree on the previously outlined 1 million barrels per day cut output deal, discussed in September.
Oil prices surged 3 percent early last week, their highest in three weeks as talks looked promising that OPEC were moving to close the deal.
Now, key OPEC members are in conflict over details of the deal over which producers should cut and by how much, predications that the meeting may fail and the oil over-supply will continue into 2017, third consecutive year since oil prices were halved or even less than that.
Brent crude oil LCOc1 was down $1.50 a barrel at $46.74 by 1315 GMT. U.S. light crude oil CLc1 was down $1.50 at $45.58 a barrel.
Non-OPEC producer Russia said on Tuesday it will not attend the OPEC meeting on Wednesday, but added that w meeting between the group and non-affiliated producers at a later stage is possible.
In Asia, OPEC’s biggest customer region, oil importers confirmed that they will not be happy with an artificial supply cut that hikes prices and that in case of a cut they would seek supplies from outside OPEC.
If the agreement was reached, an oil barrel will move above $50 per barrel.
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