Oil slumps as hopes of production freeze fade

The U.S. benchmark, West Texas Intermediate (WTI) for April delivery, fell 84 cents to settle at $36.34 a barrel on the New York Mercantile Exchange.Europe's benchmark, Brent North Sea crude for May settlement, lost 79 cents to close at $38.74 a barrel in London dealing.Crude oil prices have rallied from their lows in January, helped by talk of a production freeze led by Russia and Saudi Arabia. But sentiment has turned more sceptical this week. "Brent crude prices have fallen for four out of the last six trading days, the worst run in three weeks, as the chances of a coordinated output freeze deal between OPEC and non-OPEC producers recede while Iranian output has increased significantly over the last month," said CMC Markets analyst Jasper Lawler. A proposed meeting in Russia between Saudi Arabia and other oil producers to discuss output limits has been pushed back to April from March 20. Tim Evans of Citi Futures said the market sell-off reflects "a broader recognition that the proposed output freeze by key OPEC and non-OPEC producers looks more like a status quo policy than a game-changer.""A meeting may yet happen in April, but we would not be surprised if the campaign to get a meeting shifts to lobbying efforts targeting the June 2 OPEC summit," Evans said.Traders are also awaiting the release of official U.S. government data on oil inventories later Wednesday, with expectations of another increase in already bulging commercial crude stockpiles.
Editor: Ade Marboenhttp://www.antaranews.com/berita/550280/minyak-terus-merosot-karena-harapan-pembekuan-produksi-memudar