Oil prices, on Tuesday, November 29, crashed as much as 4 percent on signs hinting exporters in the Organisations of Petroleum Exporting Countries, OPEC, were struggling to agree on a deal to cut production to reduce global oversupply.
Brent crude oil was down $1.87, or 3.9 percent, a barrel at $46.37 by 2:38 p.m. ET. U.S. light crude oil settled down $1.85, or 3.9 percent, at $45.23 a barrel.
The cartel will meet in Vienna on Wednesday aiming to implement a deal outlined in September to cut output by around 1 million barrels per day (bpd), from around 33.82 million bpd in October, Reuters reports.
However, Iran and Iraq were resisting pressure from Saudi Arabia to curtail oil production, making it hard for OPEC to reach an agreement. That has led some analysts to suggest the meeting may fail to reach a deal or produce one that is unworkable.
Documents prepared for a ministerial OPEC meeting on Wednesday propose the group cut production by 1.2 million bpd from October levels, an OPEC source familiar with the papers said.
The papers for the meeting also propose Saudi Arabia reduce production to 10.07 million bpd from 10.54 million bpd in October and that Iran freeze output at 3.797 million bpd, according to the source.
