WTI crude futures fell overnight (Nov. 4) after oil-exporting countries and their allies decided not to further increase production capacity.
- WTI crude futures were down $2.05, or 2.5%, at $78.81 a barrel.
- Brent crude futures were down $1.45, or 1.8%, at $80.54 a barrel.
Crude oil contracts fall after OPEC+ decided at its meeting yesterday to increase oil production by 400,000 barrels per day in December, as in previous months.
Crude oil contracts are also under pressure because Iran will resume talks on a nuclear agreement with the West this month. This could mean the lifting of sanctions against Iran and allow Iran to resume oil exports.
Negotiations on the 2015 Iran nuclear agreement, known as the Joint Comprehensive Plan of Action (JCPOA), will resume on Nov. 29.
In addition, the trading environment in oil markets remained negative as the EIA reported that U.S. crude oil inventories increased by 3.3 million barrels last week.
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Friday, November 5, 2021