By Matthew Cowley
LONDON--Oil prices fell further on Thursday afternoon, setting a
fresh four-year low, as the Organization of the Petroleum Exporting
Countries opted not to cut its production quota despite the
plentiful supplies that are sloshing around.
The members of the oil-producing group met in Vienna on Thursday
and stuck to their existing production limit of 30 million barrels
a day. There may be an effort to stick to the official figure,
which analysts say might lead to a decline in production of about
300,000 barrels a day, as some OPEC members exceed their production
quotas.
OPEC is "forfeiting its role as swing supplier" said Harry
Tchilinguirian, senior oil analyst at BNP Paribas. Saudi Arabia is
"leaving it to the market to re-adjust balances though prices," he
said.
The result could be significant financial shortfall for producer
countries, but it is unlikely to change things for U.S. shale,
where investment and expenditure are still committed, he said.
Brent crude for January delivery was down $2.93 at $74.79 a
barrel on ICE Futures Europe--a decline of 3.8%. WTI for January
fell $2.72, or 3.7%, at $70.97 on the New York Mercantile
Exchange.
ICE gas oil for December changed hands at $668.25 a metric ton,
down $26.50. Gasoline for January delivery was down 3.5% at $1.9407
a gallon.
Cassie Werber contributed to this article.
Write to Matthew Cowley at matthew.cowley@wsj.com
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