North American energy prices fall after the news about Iran and Saudis’ negotiations

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North American energy prices crashed after the news reports on Friday saying that Iran and Saudi Arabia are making little progress in their negotiations about cutting oil production level, Calgary Herald informs.

Crude oil prices had previously benefited from the expectations that a meeting of the Organization of the Petroleum Exporting Countries (OPEC) this week would lead to a freeze of oil production that may settle global energy markets. But Friday reports suggested that Saudi Arabia is not going to ink any deal at the Algiers meeting.

“Nothing will be decided and it certainly won't be binding,” said John Stephenson, president and CEO of Stephenson & Co. Capital Management. “I think the reality is, OPEC has never, ever stuck with a forecast and a quota, so it's really just a rough guide at best.”

That news made North American energy prices fall down, with the November crude oil contract down $1.84 cents to US$44.48 per barrel.

Last week Saudis officials claimed they are ready to cut crude oil production only if Iran freezes its oil output at the current level.