Crude oil increased for a third day after OPEC’s failure yesterday to reach an agreement on production targets for the first time in at least 20 years.
Futures gained as much as 1.1 percent after what Saudi Oil Minister Ali al-Naimi said “was one of the worst meetings we’ve ever had.” Ministers from the 12-nation Organization of Petroleum Exporting Countries were unable to come to an accord in five hours of talks. Reports showed U.S. initial jobless claims rose last week and the trade deficit narrowed in April.
The line-up on either side of increasing production quotas seems fairly straightforward: countries that like the west want to release more oil, countries that have issues with the west, and America in particular, do not.
Of course, we have all that oil in Iraq that's pumping massively, so....