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MTECHTIPS:- Oil futures resume decline after Monday’s sharp rally

MTECHTIPS:- Oil futures resume decline after Monday’s sharp rally

West Texas Intermediate and Brent oil prices resumed their decline on Tuesday, as investors opened fresh short positions in response to OPEC’s decision to maintain production last week. On the New York Mercantile Exchange, crude oil for delivery in January fell by as much as 3.6% to touch a daily low of $68.28 a barrel, before trading at $68.45 during European morning hours, down 56 cents, or 0.8%. A day earlier, Nymex oil futures fell by as much as 3.6% to touch a daily low of $63.72 a barrel, a level not seen since July 2009, before rallying to settle at $69.00, up $2.85, or 4.31%, as market players closed out bets on lower prices. Elsewhere, on the ICE Futures Exchange in London, Brent oil for January shed 36 cents, or 0.5%, to trade at $72.18 a barrel.London-traded Brent prices hit $67.57 a barrel on Monday, the weakest level since October 2009, before turning higher to close at $72.54, up $2.39, or 3.41%. The Organization of Petroleum Exporting Countries said on November 27 that it would keep its official production target unchanged at 30 million barrels a day, disappointing hopes the oil cartel would lower output to support the market. The 12-member group is responsible for approximately 40% of global supply. Their next meeting is scheduled for June 5, 2015. Concerns over weakening global demand combined with indications that OPEC producers will not cut output have weighed on prices in recent months. London-traded Brent prices have fallen nearly 37% since June, when it climbed near $116, while WTI futures are down almost 38% from a recent peak of $107.50 in June.

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