The Oil price experienced significant volatility today before pushing lower over worries that OPEC members will stick to the agreed output deal they brokered.
Initially today, crude oil broke down through the $49 mark after a report from the American Petroleum Association that showed crude oil reserves jumped 4.8 million barrels last week,
Later in the day the commodity rebounded back through the $50 after a surprise announcement from the US energy Administration that showed crude stockpiles fell 553,000 barrels last week against analysts’ expectations for a 1.7 million barrel rise.
Towards the end of the trading session however the price again reversed, after doubts began to emerge about some OPEC members such as Iran and Nigeria who analysts believe will refuse to back the expected decision to freeze output when the cartel meets in Vienna on November 30th.
If a deal is not reached there is a potential for a sharp fall in the oil price so all eyes are on next month’s meeting,
"The focus point from here remains on the OPEC meeting that comes a month from now, with Iran, Libya and Nigeria all looking unlikely to commit to output cuts," said Tariq Zahir, crude trader and fund manager at Tyche Capital Advisors in New York.
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