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Pre-OPEC producer meeting fails to deliver oil output cut

[Kittyday]

By Ryan Chilcote, Laura Hurst and Maher Chmaytelli
Nov 25, 2014 4:17 PM ET
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Nations supplying a third of the world’s oil failed to pledge output cuts after meeting in Vienna today. Russia can withstand prices even lower than they are now, the country’s biggest producer said.
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Officials from Venezuela, Saudi Arabia, Mexico and Russia said only that they would monitor prices. Crude futures sank to a four-year low in New York. OPEC meets in two days, with analysts split evenly over whether the group will lower output in response to the crash in prices.
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Crude fell into a bear market this year amid the highest U.S. production in 31 years and speculation that Saudi Arabia and other members of the Organization of Petroleum Exporting Countries won’t do enough to curb a surplus. Prices are below what nine of group’s 12 members need to balance their national budgets, data compiled by Bloomberg show.
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“All these countries are significantly affected by lower prices and want to see cuts, but it is a big step between having these talks and taking actual coordinated action to achieve this,” Richard Mallinson, geopolitical analyst at London-based Energy Aspects Ltd., said by phone today. “The key is going to be what happens amongst OPEC members.”