Oil prices drop amid output cut skepticism

Russia reported average oil production in November of 11.21 million barrels per day

New York, Dec 7: Oil prices dropped on Tuesday, breaking four-session win streak, as market fear record crude output and the reaction of U.S. shale producers may undermine the Organization of the Petroleum Exporting Countries (OPEC)'s output cut deal.

The cartel's oil output set another record high in November, rising to 34.16 million barrels a day, according to a Bloomberg News survey.

Russia reported average oil production in November of 11.21 million barrels per day, its highest in nearly 30 years.

That means OPEC and Russia alone produced enough to cover almost half of global oil demands.

Meanwhile, analysts have warned that a higher oil price will prompt U.S. shale production and then bring the price down again.

The West Texas Intermediate for January Delivery decreased 0.86 dollars to settle at 50.93 dollars a barrel on the New York Mercantile Exchange, while Brent crude for February delivery erased 1.01 dollars to close at 53.93 dollars a barrel on the London ICE Futures Exchange.

IANS