On Tuesday, the oil prices again showed a decline. It was due to an OPEC agreement to reduce the overflowing chain of crude oil into the heavily overloaded global oil market by at least one million barrels per day. The oil prices were decreased due to Russia (non-OPEC) has confirmed that they will not send their delegation in the meeting of Organization of the Petroleum Exporting Countries taking place on Wednesday in Vienna. The Russian Minister of Energy Alexander Novak issued a statement on Tuesday that Russian authorities said there is no need to attend the OPEC meeting. The U.S benchmark West Texas Intermediate for delivery in January decreased 1.89 U.S dollars per barrel to 45.19 U.S dollars in the European trading. The Brent North Sea crude was decreased 1.86 U.S dollars/ barrel to 46.38 U.S dollars/ barrel.
Most of the analysts believe continuous decrease if OPEC unable to reach on an agreement on Wednesday for their first combined output cut in 8 years to decrease the global oversupply to increase the oil prices. There are 3 major participants in this group including Saudi Arabia, Iraq and Iran. They are still disagreeing on the cut size for oil producing member and the organization needs to reduce oil production by non-OPEC countries such as Russia. Point to be noted that Russia is currently producing more than 11 million barrels crude oil per day and it has been considered a massive level not seen in the Soviet days. Russian authorities said that they are ready to freeze their output, but not agree to cut it. Bloomberg reported that Iran and Iraq have expressed their objections to a proposal of decrease up to 1.2 million barrels/ day. Saudi Arabia said Tehran should freeze its level of production, but Iran refused to cut its production until reaching its pre-sanctions levels.