OPEC meets as oil falls further

CRUDE oil fell for the first time in four days on forecasts that US inventories rose and scepticism OPEC will cut production by one million barrels a day.

US crude oil supplies probably climbed 1.5 million barrels last week, according to the median of forecasts by 14 analysts before a US Energy Department report tomorrow. The Organisation of Petroleum Exporting Countries, which pumps about 40% of the world’s oil, will meet in Qatar in two days to confirm the informal agreement to reduce output.

“We are shrugging off OPEC’s production cuts,” said Kyle Cooper, director of research at IAF Advisors in Houston. “There are healthy inventories and any cut in production will increase spare capacity, which undermines the bullish case.”