Oil prices slumped by almost four percent on Tuesday on news that major oil producers disagreed on distribution of output reduction.
Media reports said Tuesday that Iran and Iraq have been resisting pressure from Saudi Arabia to cut crude oil output, making it harder for Organization of Petroleum Exporting Countries (OPEC) to finalize a deal. Meanwhile, Russia said it would not attend major talks with OPEC on Wednesday in Vienna, Austria.
Some analysts suggested that OPEC might reach a watered-down version of output cut deal Wednesday, or even fail to reach an agreement at all.
The West Texas Intermediate for January Delivery decreased 1.85 U.S. dollars to settle at 45.23 dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery erased 1.86 dollars to close at 46.38 dollars a barrel on the London ICE Futures Exchange.
