MOSCOW, October 28 (RIA Novosti) — Global oil prices are falling as a result of increasing oil production in OPEC countries, Tuesday trading results showed.
"It's clear that the supply situation is at a record in terms of stockpiles, so it's going to take some time to clear that excess," Bloomberg quoted CMC Markets chief strategist Michael McCarthy as saying Tuesday in Sydney.
"The expectation is that they [OPEC] will announce a cut but the question is whether or not they will deliver on them," McCarthy added, Bloomberg reported.
December futures for West Texas Intermediate are trading at $80.36 per barrel at the New York Mercantile Exchange, while December Brent futures are trading at $85.15 per barrel at the London-based ICE Futures Europe exchange.
According to Bloomberg, an increase in OPEC oil production is continuing to depress global oil prices.
On Monday, Goldman Sachs said that the forecast for the first half of 2015 was changing and predicted a decline in oil prices in the medium term.
Market uncertainty can be also explained by investors' expectations from an OPEC meeting scheduled for November. At their annual meeting in Vienna on November 27, OPEC members have to decide if they will continue reducing production, considering worsening forecasts for consumption and a significant increase in global oil production.
OPEC is an organization established in 1960 to coordinate crude oil sales and pricing internationally. Its founding members are Iran, Iraq, Kuwait, Saudi Arabia and Venezuela, and they were joined later by Qatar, Indonesia, Libya, the United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon and Angola. The organization controls about two-thirds of the planet's known oil deposits. OPEC handles 40 percent of the world's oil production and 50 percent of the global oil exports.