News 6 december — 11:28

Oil prices go down in anticipation of OPEC+ deal


OPEC and its allies are expected to agree on the terms of price-boosting output cuts on Thursday, despite pressure from President Donald Trump to reduce the cost of crude, CNBC reports.

The influential oil cartel meets at its headquarters in Vienna, Austria, with the aim of reaching an accord over production levels for the next six months. The 15-member organisation will then hold talks with allied non-OPEC partners on Friday, with markets widely-expecting the energy alliance to announce steep output reductions from January.

The much-anticipated meeting comes at a time when the oil market is near the bottom of its worst price plunge since the 2008 financial crisis. Oil prices have crashed around 30 per cent over the last two months, ratcheting up the pressure on budgets in oil-exporting countries.

International benchmark Brent crude was trading at $61.08 a barrel at around 7:10 a.m. London time, down around 0.8 percent, while West Texas Intermediate (WTI) stood at $52.36, more than 1 per cent lower.

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