Crude Oil Futures Tumble, Producers Meet To Discuss Compliance Levels

Crude oil prices declines on Monday, reversing lower after having closed higher in two previous sessions. The commodity was under pressure due partly to the fact that investors took profit after a sharp jump in price last Friday while a meeting between OPEC and non-OPEC members contributed to providing some downside.

U.S. West Texas Intermediate crude futures dropped nearly 1.9% to trade at $47.26 a barrel on the New York Mercantile Exchange in North American trading session on Monday. The Organization of the Petroleum Exporting Countries (OPEC) was due to hold a technical meeting with non-cartel members in Vienna to discuss compliance levels with the cartel’s production cut deal.

According to the International Energy Agency’s latest monthly report, OPEC compliance with the agreement fell to 75% in July – the lowest level since the beginning of this year. As stated by a recent report from OPEC, the cartel’s crude production increased last month due to an unexpected rise in production in Libya and Nigeria, two member countries were exempt from the compliance deal.

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