Investing.com - Oil prices fell more than 3% on Tuesday, extending early losses amid growing doubts that the Organization of the Petroleum Exporting Countries will be able to reach an agreement on a deal to curb output.
U.S. crude oil was trading at $45.34 a barrel at 09:31 ET, down $1.73 or 3.67% from its last close.
Global benchmark Brent futures were down $1.80 or 3.66% at $47.41 a barrel.
OPEC is attempting to get its 14 member states, along with non-OPEC member Russia, to implement coordinated production cuts aimed at reducing a global supply glut that has seen prices more than halve since 2014.
Oil came under renewed selling pressure after Indonesia’s energy minister said Tuesday he’s “not optimistic” that OPEC will agree on a deal to rein in oversupply.
In September the producer cartel reached an agreement that would reduce production to between 32.5 million and 33 million barrels per day.
The organization is to hold a key meeting in Vienna on Wednesday, where the deal was expected to be rubber stamped.
But reaching a deal has proved problematic, amid disagreements over which producers should cut and by how much.
Technical talks between OPEC members on Monday failed to reach an agreement on output cuts, with Iraq and Iran - OPEC’s second and third-largest producers – resisting pressure from Saudi Arabia to reduce production.
Most analysts still believe OPEC will sign an accord to cut output, but doubts remain over whether it will be enough to support the market.
Morgan Stanley said Tuesday it still sees a deal as likely but added that the risks of failure have risen.
“A strong announcement from OPEC to cut meaningfully could lift oil to $50 or more over the following days, particularly if supported by strong words from non-OPEC, before focus shifts to execution risk, sustainability and any non-OPEC supply response” analysts at Morgan Stanley wrote.