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Crude Falls to Lowest Since 2010 After OPEC

November 27, 2014 at 21:11 by Vladimir Vyun

The main focus for markets today was the meeting of the Organization of Petroleum Exporting Countries. As was expected by some analysts, the organization did not reduce its production. The OPEC announced:

Recording its concern over the rapid decline in oil prices in recent months, the Conference concurred that stable oil prices – at a level which did not affect global economic growth but which, at the same time, allowed producers to receive a decent income and to invest to meet future demand – were vital for world economic wellbeing. Accordingly, in the interest of restoring market equilibrium, the Conference decided to maintain the production level of 30.0 mb/d, as was agreed in December 2011.

Crude oil tumbled after the announcement. Both West Texas Intermediate and Brent crude touched the lowest levels since 2010, and WTI fell below the $70 level for the first time in more than four years.

January contract for WTI crude sank 6.30 percent to $69.05 per barrel as of 20:46 GMT on NYMEX today. Brent crude tumbled as much as 6.65 percent to $72.58 per barrel on ICE.

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