Oil prices continued to decline at a hearing Wednesday to complement the sharp decline seen in the previous session after Saudi Arabia ruled over all hopes of reducing production and industry data showed a rise in US crude oil inventories. At the same time, Iran has said it clarify that it has no interest in curbing production after it was lifting sanctions against it, a recipe agreement, which was among the largest oil producers Saudi Arabia and Russia laughable.
Lower oil prices following the loss of the freezing of the popular production agreement amid rising US inventories At 05:25 GMT, the US was going on futures contracts for crude oil traded on the decline of 2.4% from the previous session and at the level of US $ 31.14. As for the futures for Brent oil it was also traded to a decline of 1.4% from the previous session and at the level of US $ 32.80. We note that both criteria have decreased by more than 5% in the previous session.
The decline in oil prices comes after confusion that arose in the market yesterday to coincide with the statements made by Saudi Oil Minister Ali al-Naimi that Saudi Arabia showed a lack of intention to cooperate to solve the problem of low prices, either by freezing or reduced production. In his statement, al-Naimi said the agreement between the coordinator will not happen if Saudi Arabia will freeze production and is not reduced because of mistrust between the major oil producers. He said that the problem of lack of trust is an essential and increasingly there is a lot of countries are going to achieve in spite of saying they will do to reduce production. And that any proposal for a freeze in January levels requires the agreement of all the major producers not to add any additional barrels.
As Bijan Zanganeh Iranian Oil Minister said in a statement told the Iranian news SHAMA that some of his neighbors have increased their production by 10 barrels per day, and now they have the audacity to demand from Iran to freeze its output at the rate of one million barrels daily, which is very funny and illogical. At 9:45 GMT, was being traded WTI at US $ 30.91 a barrel while he was going on the other hand, Brent crude traded at US $ 35.29 a barrel.
