Crude down on OPEC uncertainty

November 29, 2016 3:47AM CST

Crude oil prices fell as much as 4 percent on Tuesday, after Iran's oil minister said the country was prepared to leave its oil production at the levels OPEC had agreed upon at its September meeting in Algeria. OPEC, which accounts for a third of global oil production, agreed in September to cap output at around 32.5-33.0 million barrels per day vs the current 33.64 million bpd to prop up oil prices, which have halved since mid-2014. OPEC said it would exempt Iran, Libya, and Nigeria from cuts, as their output has been crimped by unrest and sanctions. The deal was seen as a victory for Iran. Tehran has long argued that it wants to raise production to regain market share, lost under Western sanctions when its political arch-rival Saudi Arabia increased output. If OPEC agreed a production cut to 32.5 million bpd, crude prices would likely rise to the low $50 a barrel.

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