The highly anticipated OPEC deal is in the spotlight again. This time around, it has triggered a drop in oil prices contrary to what experts had forecasted. There is already a lot of talk about the forthcoming OPEC deal meeting in which major oil producers are expected to enter into a ground breaking deal. According to the representative of the organisation, the deal is going to coerce oil producing countries to cut production and end the long standing supply glut.
Recent oil gains
The news that most of the major oil producing countries is going to yield to the demands of the deal had spurred gains for the commodity. Investors had already starting seeing a significant drop in the price of the commodity, a development which had forced oil prices to go up a bit.
The drop by the end of Friday
Prior to the end of the pre-thanksgiving trading session, the oil prices dropped. A number of oil futures registered losses as high as 4 % or even worse for some. The drop in oil prices comes as investors chose to halt any speculations of a cut in the long standing oil glut which has been keeping prices low. Investors chose to adopt a wait and see strategy. Which simply means that they chose to wait and see what will happen to the supply once the OPEC meeting is over. The crucial meeting is due to pave way for important moves aimed at ending the oil supply glut. Uncertainties regarding the deal arose when some countries expressly indicated their unwillingness to adhere to the outcome of the deal.
Market indicators on a number of stock markets showed losses in crude futures. Notably is the New York Mercantile Exchange whose crude futures dropped by $2.02 to trade at $45.3.Brent Crude also registered a loss of 3.9 % equivalent to a drop of $1.92.