Crude Oil Prices Drop 1% as OPEC Output Surges

Brent futures crude was down 56 cents, or 1.1 percent, at $51.85 a barrel at 2:38 p.m. (1838 GMT).
Officials from some of the world's biggest oil trading companies told the Reuters Commodities Summit in London that crude was unlikely to achieve supply-demand balance until well into 2017.
“I don't think they (OPEC) can make any substantial cuts. There are too many uncertain factors involved,” said Gunvor Group's Chief Executive Officer Torbjorn Tornqvist, adding that increasing Nigerian and Libyan output was enough to “wipe out any other deal that has been agreed on. “
Marco Dunand, CEO of Mercuria Energy Group Ltd, said prices could fall to the low $40s if OPEC failed to agree on a cut at the November meeting.
Doubts remain as to the intentions of major suppliers such as Saudi Arabia and Iran and the effectiveness of any agreement to rein in output from record highs.
The prospect of countries from OPEC and non-OPEC members such as Russia coordinating a production curb will support prices above the $50 mark, market participants have said since an initial agreement was struck at the end of last month.
Government officials from major oil producers, including Russia, are meeting in Istanbul this week to try to lay out further details of production cuts ahead of an official OPEC meeting in November.