Oil prices were mixed in Asia today ahead of a crucial meeting of the OPEC cartel later during the week that will discuss whether to trim output, analysts said.
US benchmark West Texas Intermediate crude for January delivery was down six cents at $76.45 a barrel in late-morning trade and Brent crude for January added two cents to $80.38.
The Organisation of Petroleum Exporting Countries will hold one of its toughest and most significant meetings in recent years on Thursday, with members under pressure to address the falling prices, which have sunk 30 per cent since June.
“All eyes will be on the OPEC meeting in Vienna and how members are going to react to the falling prices,” said Daniel Ang, investment analyst with Phillip Futures in Singapore, adding that the market is divided on what action cartel will take.
Cut in oil production
OPEC’s poorer members, led by Venezuela and Ecuador, have called publicly for a cut in output, while Iran has also hinted at a need to reduce production.
But the cartel’s Gulf members, led by kingpin Saudi Arabia, are rejecting such calls unless they are guaranteed market share in the highly competitive arena, according to analysts.
GDP data awaited
Ang said investors were also waiting for third-quarter gross domestic product data from the United States and European powerhouse Germany scheduled on Tuesday to gauge oil demand.