Oil prices steady after tumble as market awaits OPEC+ clarity

A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. (Reuters)

SULAIMANI (ESTA) — Oil prices steadied on Wednesday after a steep deep in the previous session, following the cancellation of talks among OPEC+ producers.

Brent crude was up 61 cents at $75.14 a barrel by 0722 GMT, after slumping more than 3% on Tuesday.

U.S. West Texas Intermediate (WTI) was up 74 cents at $74.11 per barrel, having declined by more than 2% in the previous session.

Energy ministers from OPEC+, a grouping that includes OPEC, Russia and their allies, ended talks on supply policy on Monday.

Divisions between Saudi Arabia, the biggest UAE producer, and the United Arab Emirates (UAE), which opposed extending supply constraints designed to support prices after the fall in demand from the pandemic, were the main reason behind the failure of the talks.

“There is a possibility of an OPEC+ rebellion that could bring unregulated output back to the market,” Rystad Energy oil markets analyst Louise Dickson told Reuters.

Nonetheless, “the market is getting too tight for consumers, especially in the U.S., where oil is becoming uncomfortably expensive for consumers and industry,” Dickson added.

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