Oil Futures Climb As OPEC Fails To Reach Production Decision

Crude oil futures marched up Wednesday as news emerged from Vienna that a meeting between members of the Organization of the Petroleum Exporting Countries broke up without a decision to either reduce or raise production output. A Reuters report says that Saudi oil minister, whose country had tried to convince OPEC to raise oil production, called it “one of the worst
The United States Oil ETF, which reflects the performance of WTI crude’s spot price, moved up in tandem.

Markets were expecting an increase, as the sudden climb in crude futures today shows. WTI crude increased 1.7% to $100.76 a barrel, while Euro-focused Brent crude reached $118.05, up 1%.

Six out of the 12 member countries in OPEC were opposed to an output increase, according to Reuters. The Saudi proposal was to increase output by 1.3 million barrels a day to 30.3 million.

The political unrest in Libya has stalled the oil supply from the nation, and is made more tenuous by the country’s split leadership. An increase in production was expected to help counteract commodity inflation, which yesterday Fed chairman Ben Bernanke tried to reiterate was not a product of fiscal policy measures in the U.S.

The meeting’s results, however, show more resistance than was expected to developed nations that are feeling economic pressure from energy price inflation. The next OPEC meeting will be December 14.

 meetings we have ever had.”