The oil prices slipped to one week low, as a result of diminishing prospects of OPEC and non-OPEC ministers to deliver incremented cut, who met to discuss the pact to curb oil output.
While the oil price fell 2.5 percent on Friday as a result of a consultancy’s forecast regarding the rise in OPEC production in the month of July, Brent September crude futures fell 18 cents on the day to end at US$47.88 a barrel at 0850 GMT. On the other hand, NYMEX crude for September delivery lost 20 cents to end at a barrel price of US$45.57.
Non-OPEC Countries Opening New Opportunities
In a few days, a number of leaders from the OPEC and other non-OPEC producers are to meet at St Petersburg in Russia, slotted to review the current situation of the market and analyze any proposals pertaining to their pact to cut output.
While Saudi Energy Minister Khalid al-Falih has made it clear that there will be no discussion on deeper oil output cuts, he is open for a discussion on output caps for non-OPEC countries including Libya and Nigeria.
Until now, Libya and Nigeria have been exempted from the cuts in order for their industries to recover from decades of civil war. That being said, several analysts strongly doubt that OPEC will take such a considerate decision, and that there simply is no hope for output cuts from Libya and Nigeria after the misery they have gone through in the recent past.