Crude Down As OPEC Delays Production Decision

Crude oil fell below $53 a barrel in New York after OPEC deferred for another two weeks a decision to reduce output.

Slowing global growth means demand will be “much lower” than expected a month ago, OPEC said in a statement after the group’s Nov. 29 meeting in Cairo.

"Market assessments indicate that the market has around 2m barrels per day of oversupply," Iran's oil minister, Gholamhossein Nozari, said yesterday. "In Algeria we will have to make a decision to establish balance between supply and demand."

The cartel meet again in Algeria in a fortnight. As the meeting in Cairo this weekend illustrates, there are unmistakable signs that the group is struggling to maintain its unity.

The Gulf states, led by Saudi Arabia, are unwilling to approve further supply reductions before other members of the cartel - particularly Iran and Venezuela - follow through on previous commitments to cut output.

At 8.45am GMT crude was $2.31 lower at $52.12/barrel.