NEWYORK: Japan oil prices slipped back into depression and OPEC production cuts doubt to reduce production will reach an agreement. US benchmark West Texas Intermediate for December delivery shed 18 cents to $75.64 a barrel on the New York Mercantile Exchange.
European benchmark Brent oil for January delivery slipped 10 cents to $79.31 a barrel in London Confidence in the Japanese recovery took a hit when official data showed that gross domestic product for the world s third largest economy shrank 0.4 percent in the third quarter.
That decline followed a revised 1.9 percent contraction in the April-June quarter.
“With Japan falling back into a surprising recession, the whole Asian area comes under pressure,” said Carl Larry, director of oil and gas for Frost & Sullivan.
“This will add to OPEC s dilemma as it heads into its last meeting of the year.”
The Organization of Petroleum Exporting Countries is set to meet in Vienna on November 27. Despite a drop of more than 25 percent in oil prices since June, the cartel has been divided on whether to take action.
Venezuela and Ecuador have called publicly for a cut, but key member Saudi Arabia has so far signaled resistance.
“There looks to have been some pickup in OPEC background discussions ahead of the group s November 27 summit,” said Tim Evans, analyst at Citi Futures.
“But the market remains skeptical that any effective action will be taken to spark a recovery in prices.”
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