Oil futures slip up amid sell-off, despite markets bracing for production cuts

The price of oil fell this morning, despite expectations that Opec will reduce its output shortly.

International standard Brent crude dropped 0.95 per cent from its last close to $66.16 per barrel.

Prices had initially ticked up this morning in anticipation of Opec cuts, but later fell amid a broad sell-off on the market.

The news comes a day after the International Energy Agency warned that cuts to the supply of oil could have a negative impact on global markets.

IEA chief Fatih Birol called for common sense amid talk of a curb on output.

“Currently markets are very well supplied but we should not forget that spare capacity in Saudi Arabia is very thin, therefore cutting the production significantly today by key oil producers may have some negative implications for the markets and further tightening the markets,” he said.

“My appeal to all producers and consumers across the world is to have common sense in these difficult days.”

Trading platform XM said: “Oil ticked higher on Monday on the back of speculation for Opec supply cuts, and amid news the EU is set to sanction some Iranian nationals.

“However, the recovery proved short-lived and crude retreated again, weighed by the risk averse market environment.”

Prices rebound last week after losing 25 per cent over a record 12-day decline on suggestions that Opec might cut its production over the coming months.