Crude Oil prices were under pressure on Tuesday, reversing earlier gains as fading expectations of a coordinated production cut among major global oil producers and a stronger U.S. dollar weighed.
Oil prices fell on Wednesday, pulled down by a report of surging U.S. crude inventories, rising output in Nigeria and squabbling among producers about a planned output cut, which together re-ignited concerns over a global supply glut.
Iraq, the second biggest producer in OPEC after Saudi Arabia, recently said it wanted to be exempt from any output freeze deal among major global producers ,arguing it needs the revenues to fight Islamic State. .
Other OPEC-members, including Libya and Nigeria, are likely to be exempt from cutting production, while Iran and Venezuela and Indonesia are also unlikely to reduce output.
Unless non-OPEC production giant Russia joins the effort, that leaves the onus of a potential cut with Arab producers in the Middle East like Saudi Arabia, Kuwait and the United Arab Emirates (UAE).
However, OPEC said it won’t finalize details on individual output quotas until its next official meeting in Vienna on November 30, when an invitation to join the deal could also be extended to non-OPEC countries such as Russia.