No help from OPEC reports: Oil slumps

WTI crude oil is at the lows of the day, down $0.80 to $68.12 after rising as high as $70.30 early in US trading.

The spike to the highs of the day came on a Reuters report saying that OPEC+ nations are discussing a further delay to a planned output return that was slated for January.

OPEC is set to meet on Sunday so expect a steady stream of leaks ahead of the meeting. Last week, a report said a resumption in some production could be delayed through Q1, which is the time of year with typically the lowest demand.

OPEC is holding back nearly 6 million barrels of production in total, though only about three-quarters of that is readily available. A major risk for the year(s) ahead is that OPEC breaks down and embarks on a war for market share. That would break a series of lows below $65 and could bring in crude prices as low as $40. That’s well-below profitable levels for a very large part of global supply, including nearly all US production.

This article was written by Adam Button at www.forexlive.com.