Crude oil fell after the U.S. economy expanded at a slower pace than anticipated in the third quarter and OPEC agreed to maintain production targets. Oil slipped after the Commerce Department said that the gross domestic product grew 2.2 percent from July through September, down from a 2.8 percent gain previously reported. The Organization of Petroleum Exporting Countries will hold quotas at 24.845 million barrels a day. “This was a significant revision,” said Jason Schenker, president of Prestige Economics LLC, an Austin, Texas-based energy consultant. “This should weigh on prices.”
Crude oil for February delivery dropped 47 cents, or 0.6 percent, to $73.25 a barrel at 10:14 a.m. on the New York Mercantile Exchange. Prices are up 64 percent this year. This was the fourth time this year that OPEC ministers met without revising production figures. Today’s meeting was held in Luanda, Angola. Rising prices have encouraged some OPEC members to renege on their pledge in 2008 to reduce output by 4.2 million barrels a day. Members complied with 58 percent of cuts in November, down from 60 percent the previous month, according to International Energy Agency estimates.....Read the entire article.
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