Oil prices eased on Monday as traders took the profit on last week's gain.
Oil prices rose for four consecutive trading days last week, boosted by the possibility that major oil producers may cooperate to curb their production. Abdalla El-Badri, the head of Organization of Petroleum Exporting Countries(OPEC), last Tuesday called on oil producers outside the group to help reduce the global oversupply. Russian media last Thursday reported that ministers from OPEC and other oil producing nations will meet in February.
Traders cautioned against betting too much hope on the talks on reducing output so as to support prices. Investment bank Goldman Sachs said in a report that output cut is unlikely, and the world's biggest oil producers will keep pumping crude to the glutted market.
The West Texas Intermediate for March delivery moved down 2 U.S. dollars to settle at 31.62 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery decreased 1.75 dollars to close at 34.24 dollars a barrel on the London ICE Futures Exchange.
Latest comments