Crude Oil Pushes Above $100/Barrel as Six OPEC Countries Oppose Output Hike
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NYMEX crude oil is up more than 2 percent Wednesday as discussions related to oil production levels at an OPEC meeting in Vienna, Austria, this morning hit an unexpected snag. Crude for July delivery last traded around $101.58 per barrel.
Saudi Oil Minister Ali al-Naimi summed up the meeting quite nicely in just two sentences: "It was one of the worst meetings we've ever had...We were unable to reach an agreement."
Oil prices crept lower (about 5 percent) since the beginning of June as a hike in production was widely accepted after a number of countries directly requested an increase in output. Now, as disagreements within the Organization lead to no change in quotas, oil is taking back most of the declines the commodity saw heading into the OPEC meeting.
The "failed" OPEC meeting marks the first time in more than 20 years the group has been unable to reach an agreement. Saudi Arabia, the largest oil producer in the world, along with the UAE, Qatar and Kuwait voted to raise OPEC output by 1.5 million barrels a day, while Iran, Venezuela, Libya, Angola, Ecuador and Algeria opposed an increase in production.
Saudi Oil Minister Ali al-Naimi summed up the meeting quite nicely in just two sentences: "It was one of the worst meetings we've ever had...We were unable to reach an agreement."
Oil prices crept lower (about 5 percent) since the beginning of June as a hike in production was widely accepted after a number of countries directly requested an increase in output. Now, as disagreements within the Organization lead to no change in quotas, oil is taking back most of the declines the commodity saw heading into the OPEC meeting.
The "failed" OPEC meeting marks the first time in more than 20 years the group has been unable to reach an agreement. Saudi Arabia, the largest oil producer in the world, along with the UAE, Qatar and Kuwait voted to raise OPEC output by 1.5 million barrels a day, while Iran, Venezuela, Libya, Angola, Ecuador and Algeria opposed an increase in production.
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