Oil falls as OPEC ministers fail to agree on production ceiling

OPEC members failed to agree to anoil production ceiling on Friday at a meeting that ended inacrimony, after Iran said it would not consider any productioncurbs until it restores output scaled back for years underWestern sanctions.

A final statement was issued with no mention of a newproduction ceiling, apparently allowing member countries tocontinue pumping oil at current rates into a market that hasbeen oversupplied.

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Crude oil futures for January delivery tumbled $1.11to settle at $39.97US a barrel in New York.

OPEC's secretary general Abdullah al-Badri said the bodycould not agree on any figures because it could not predict howmuch oil Iran would add to the market next year, as sanctionsare withdrawn under a deal reached six months ago with worldpowers over its nuclear program.

Most ministers left the meeting without making a comment.Iranian oil minister Bijan Zangeneh had said before the meetingthat Tehran would be prepared to discuss action only when hiscountry reached full output levels, if and when Westernsanctions are lifted.

Saudi oil minister Ali al-Naimi earlier had said he hopedgrowing global demand could absorb an expected jump in Iranianproduction next year: "Everyone is welcome to go into the market."

Iran has repeatedly said it would boost production by atleast onemillion barrels per day when sanctions are lifted.
Without curbs elsewhere, this would add to a global glut, as theworld is currently consuming up to twomillion bpd less than it isproducing.