Morning Report: Oil prices fell on Wednesday early morning trade as investors doubt that last week agreement between OPEC and Russia will have a significant impact on excess crude supply.

Brent crude price is down by 27 cents to $53.66 at 6:31 am (Nigerian time), from the last market close.

OPEC ad Russia, last week, announced that they will cut output, but doubt has emerged as some investors feel that they are only restricting the excess output recently added.

“With both Russia and OPEC producing at record amounts, the market is scratching its head about how both blocs will manage to comply with the Vienna production cut targets. The point is valid, as the more OPEC and Russia produce, the higher the starting point will be to have to cut from,” said Jeffrey Halley, senior market analyst at brokerage OANDA in Singapore.

Brent crude prices are trading at a major key level ($53.5-$53.73), after touching $55, a sign that investors are waiting for the next meeting between OPEC-Russia this weekend.

“…only fresh buying can drive crude oil prices higher above $55, and that depends on the outcome of OPEC-Russia meeting” Analyst at http://OilAndNairaNews.com

Sorce: http://oilandnairanews.com/oil-0-50-investors-doubt-impact-supply-cut/