Yep, Brent crude oil is below $50 again
Oil stayed below $50 this morning as concerns over non-Opec producers and their inability to agree a production cap continued to shake up investors.
Brent crude oil fell to $49.71 in early trading in London, 1.5 per cent down. WTI crude, the US benchmark, was at $48.70, 2.1 per cent lower. Last week it edged above $50 after inventory data from the US showed stockpiles had fallen.
The fall came after officials from non-Opec nations including Azerbaijan, Brazil, Russia, Oman, Kazakhstan and Mexico met in Vienna on Saturday. Although investors had hoped they would agree a deal on limiting output, all they were able to come up with was another date for a meeting at the end of November.
The news comes after Iraq, one of the world's largest oil producers, said it did not want to be part of an Opec deal to cut production.
In a joint statement over the weekend, both Opec and non-Opec said the meeting had been a "positive development" towards creating a cap.
"Hopes were high going into this meeting that perhaps we will have some sort of positive news but those hopes were squashed," said Naeem Aslam, chief market analyst at Think Markets UK.
"Both Opec and non-Opec members were involved in this meeting and this was a bullish signal for the oil price but the fact is that no one is ready to freeze the production let alone a production cut.
"The problem for Opec is what number they should they use when they are talking about production freeze from other countries, should this be audited number or external third party number? This creates more problems for the cartel.
"Now the traders will have to wait until their meeting and hope will be their only friend until then if they want to see supply cut."