London — Oil prices slipped on Monday, pressured by the doubt that large oil producers will reduce production as promised and on the expectation that US production would increase again this year. Benchmark Brent crude oil was down 10c a barrel at $55.35 by 9.15am GMT and US light crude fell 10c to $52.27. Oil cartel Opec has agreed to cut production by 1.2-million barrels a day to 32.5-million barrels a day from January 1 in an attempt to clear global oversupply that has depressed prices for more than two years. Russia and other key exporters outside Opec have said they will also cut output. But global oil production remains high and, with inventories near record levels in many areas, investors doubt that Opec and its allies can trim output enough to push up prices. "Cuts by Opec and non-Opec countries have just started and it will take some time for them to filter through," said Bjarne Schieldrop, chief commodities analyst at SEB Markets in Oslo. "We do not really expect the oil pr...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.