By: Mahmoud Gamal
Mubasher: Oil prices fell on Tuesday on the back of profit-taking, snapping the three-session winning streak seen after OPEC and non-OPEC members reached their first deal since 2011.
Brent crude futures, the global benchmark price, fell 0.11% or 7 cents to stand at $55.62 per barrel (pb) by 4:35am GMT, while US West Texas Intermediate (WTI) crude futures declined 0.27% or 13 cents to reach $52.69.
“It is normal to see quick profit-taking by speculators, who control the crude oil market, to close their loss-making positions, analyst Ahmed Hassan Karam told Mubasher.
Oil price decline was mainly attributed to uncertainty over how OPEC’s historic agreement would be implemented and expectations that oil will reach $40 pb, the analyst explained.
Oil prices could climb to $60 next year when OPEC agreement comes into effect next January, Karam noted.
