Oil prices slump as market unsure of output cut deal

The international crude oil prices slumped on Friday as market adopted an wait-and-see attitude toward a possible output cut deal among oil producers.

Saudi Arabia, member and top oil exporter in the Organisation of the Petroleum Exporting Countries (OPEC) said on Friday that the country will not take part in talks between OPEC and non-OPEC producers to discuss output cut details, Xinhua news agency cited media reports.

Analysts said the news was the major factor dragging oil prices down, as the investors were uncertain whether OPEC would be able to reach an output cut deal by the end of this month.

OPEC reached a preliminary agreement in September to cut crude oil output in order to stabilise global oil prices. The group is set to discuss details of the agreement in Vienna, Austria next Wednesday. If passed, the agreement will be first of its kinds since 2008.

The West Texas Intermediate for January Delivery lost $1.90 to settle at $46.06 a barrel on the New York Mercantile Exchange, while Brent Crude for January delivery erased $1.76 to close at $47.24 a barrel on the london ICE Futures Exchange.