Oil ends at one-month low on OPEC doubts, expected record output

Mon Oct 31, 2016 3:52pm EDT
 
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By Ethan Lou

NEW YORK (Reuters) - Oil prices settled at one-month lows on Monday after dropping over 3 percent on doubts about OPEC's ability to implement its planned production cuts, with the market further weighed by expectations that the cartel had record output in October.

The Organization of the Petroleum Exporting Countries (OPEC) approved a document on Monday outlining its long-term strategy, a sign its members are achieving consensus on managing production.

But OPEC has achieved little otherwise. Representatives met on Friday in Vienna, and then again on Saturday with their counterparts from non-member producers. They did not reach any specific terms, and sources said Iran has been reluctant to even freeze output.

A Reuters survey found on Monday OPEC's oil output likely hit a record high in October, rising to 33.82 million barrels per day.

Brent's front-month contract LCOc1, which expires after Monday's session, was down $1.41, or 2.8 percent, at $48.30 a barrel. It hit a low of $47.98 during the day.

The more active next-month Brent contracts were down $2.03, or 4 percent, at $48.65 a barrel.

U.S. West Texas Intermediate (WTI) futures CLc1 were trading down $1.84, or 3.8 percent, at $46.86 a barrel after falling to $46.71.

The settlement for WTI was the lowest price since Sept. 29 and for Brent was the lowest since Sept. 30   Continued...

 
A pump jack is seen at sunrise near Bakersfield, California October 14, 2014.  REUTERS/Lucy Nicholson/File Photo