OPEC and Russia rise oil production, barrel prices dip

"Prices fell for the first day in five in reaction to news that OPEC's output hit a record high last month," said James Williams, president of energy consultant WTRG Economics in Arkansas.

OPEC and Russia rise oil production, barrel prices dip

The oil price has dipped back slightly from its year-high of yesterday since OPEC agreed on November 30 to cut output. Dip in oil prices witnessed after news of rising output from major global producers in November.

After breaking through $55 a barrel, Brent crude dipped as much as 0.7 per cent overnight to trade below this threshold today. Its US counterpart, West Texas Intermediate, was down 0.4 percent to $51.60 a barrel.


"Prices fell for the first day in five in reaction to news that OPEC's output hit a record high last month," said James Williams, president of energy consultant WTRG Economics in Arkansas.

OPEC's output set another record high in November, rising to 34.19 million barrels per day (bpd) from 33.82 million bpd in October, according to a Reuter’s survey.

If the Cushing build is reinforced in Wednesday's report from the U.S. Energy Information Administration, that would signal the largest weekly rise since January 2009, data showed.

Russia additionally increased the output in November to such a scale that even its promised 300,000 barrels a day cut will see production higher next year than in the first half of 2016.

As part of last week's OPEC decision, major oil producers outside the group would cut 600,000 bpd of production on top of OPEC's 1.2 million bpd reduction. Those countries and OPEC will meet this weekend to finalise the terms.

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