Brent, WTI Prices Slip

Brent, WTI Prices Slip
Brent, WTI Prices Slip

Oil prices fell on Wednesday, taking a breather from a near 4% surge on the previous day, on receding fears of an imminent output cut by the Organization of Petroleum Exporting Countries and allies, a group known as OPEC+.
Global benchmark Brent crude futures fell 40 cents, or 0.4%, to $99.82 a barrel, after rising 3.9% on Tuesday, Reuters reported.
The US West Texas Intermediate crude futures contract was down 27 cents, or 0.29%, at $93.47 a barrel, having jumped 3.7% the previous day.
Both contracts soared on Tuesday after the energy minister of de facto OPEC leader Saudi Arabia flagged the possibility of supply cuts to balance a market it described as "schizophrenic", with the paper and physical markets becoming increasingly disconnected. 
"While Abdulaziz bin Salman's comment may have achieved more than putting a floor under crude prices, we expect it to follow the law of diminishing returns, unless it is followed up by more signals or action from OPEC+ to restrain output," said Vandana Hari, founder of oil market analysis provider Vanda Insights.
With OPEC+ already delivering about 2.8 million barrels-per-day less than its monthly target, the maths of cutting production is going to be more complicated than usual, not to mention the politics of it, Hari added.

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