Crude prices down further in spite of OPEC announcement

Crude oil prices were down on Monday despite last week’s announcement of production cuts from OPEC and in the face of a possible further cut in December. A number of analysts, however, doubt that the promised cuts will materialize since some of the nations scheduled to make cuts from actual production are already having trouble making their quotas. Those oil producers currently producing below their quotas include Nigeria, Indonesia, and Venezuela. Saudi Arabia is expected to absorb one-third of the production cuts and has told core customers in Asia that supplies will be 8 percent lower beginning in November.

Brent crude for December delivery dropped $1 to $58.68 per barrel, while West Texas Intermediate crude December contracts on the New York Mercantile Exchange were down $1.04 to $58.29 per barrel.