Oil prices fall due to investors uncertainty

Brent crude was up 0.4% to trade at US$49.10 per barrel in London, while West Texas Intermediary futures moved up slightly to around US$48.30.

WTI crude futures, also for January, were trading $1 lower than Brent, at $47.63, after reaching a high of $49.20/Bbl.

Traders had anticipated the Organization of the Petroleum Exporting Countries (OPEC) would successfully implement a production cut at its November 30 meeting in order to prop up prices.

OPEC sources on Tuesday said its members would discuss oil output cut of 4.0 to 4.5 per cent for all of its members except Libya and Nigeria when it meets next week, but the deal's success hinges on an agreement with Iraq and Iran.

Saudi Arabia, OPEC's largest producer, has expressed optimism that consensus can be reached to cut supply, though oil prices have been volatile amid speculation that exemptions granted to key countries could thwart a deal.

Oil prices paused Wednesday after three consecutive days of gains as news from an OPEC meeting pointed to lingering differences among cartel members negotiating production cuts due to be delivered at the end of the month. A senior Organization of the Petroleum Exporting Countries delegate said earlier this week full participation by Moscow would be required: "Statements from Moscow indicating they are not willing to participate in a cut but just to freeze - this will make it hard for OPEC to rebalance the market alone and bring prices up".

"The odds of OPEC getting a deal done continue to rise but the risks remain palpable", analysts at Citigroup wrote in a note to clients.

But on top of the pending Iran and Iraq issue, securing cooperation from non-members including Russian Federation has emerged as a mounting concern among some OPEC countries, said one delegate.

Despite Wednesday's slight increases, analysts said that the market was now unwilling to push crude prices to $50 a barrel or higher. Any cut would have to come primarily from Saudi Arabia, Kuwait, the United Arab Emirates and Qatar, with other members keeping output steady at current levels through the first half of 2017, it said.

"The only one that will have an impact on the oil market is if they make a cut, and a widespread one, not just the Saudis doing all the work".

That was compared to forecasts for a stockpile build of 0.67 million barrels after a build of 5.27 million barrels in the previous week. Many analysts believe that there will be a deal to lower yields, but it is uncertain exactly when and whether it will be enough to encourage market suffering from oversupply for more than two years.



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