Global oil prices turned sharply lower Thursday, reversing solid early gains, after Saudi Arabia's Oil Minister appeared to rule out deeper production cuts as ministers from the OPEC cartel meet in Vienna to hammer-out a deal on the extension a prior agreement that have kept 1.8 million barrels of oil each from the market each day.
Speaking to reporters during the meeting of The Organization of Petroleum Exporting Countrie (OPEC) members, along with 11 other non-cartel participants such as Russia, Saudi Arabia's Oil Minister Khalid Al-Falih said deeper cuts weren't necessary and that the global market could re-balance to its five-year average if the current agreement is extended for a further nine months.
WTI futures for July delivery were marked 0.58% lower than Wednesday's closing price and trading at $51.07 per barrel by 05:30 EST. However, the sharp pullback has lopped more than 1.6% from prices in the early European session, as prices rose amid speculation of an agreement on cuts that may have included deeper output limits. Brent contracts for the same month, the global benchmark, were seen 0.5% lower from Wednesday's close at $54.69 -- but down 1.4% from their intra-day high.
This article was written by a staff member of TheStreet.