U.S. crude prices fell more than 4% Wednesday after the Organization of Petroleum Exporting Countries delayed a pivotal meeting on production cuts that was scheduled for the weekend.
The West Texas Intermediate contract for January dropped $3.27, or 4.2%, to $74.50 a barrel, while the Brent contract for January fell $3.32, or 4.03%, to $79.13 a barrel.
OPEC said in a statement the meeting of energy ministers is delayed until next Thursday without providing a reason. The talks have run into trouble due to Saudi dissatisfaction with other members’ production levels, delegates told Bloomberg.
Compliance is a major challenge for OPEC and its allies, called OPEC+, because many members have an incentive to not stick with their production quotas, said Tamas Varga, an analyst with PVM Oil Associates.
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