Oil Drops On Fading Hopes For OPEC Production Cut

Indications the Organization of the Petroleum Exporting Countries, or OPEC, won't agree to cut production when they meet later this week sent oil futures tumbling Tuesday, erasing earlier gains. Nymex WTI crude for January delivery dropped $1.25, or 1.6%, to $74.53 a barrel after news reports said a meeting of officials from Venezuela, Saudi Arabia, Mexico and Russian oil giant OAO Rosneft produced no agreement to cut production. Venezuela's foreign minister said the officials agreed to meet again in three months to discuss oil policy, The Wall Street Journal reported. Russia and Mexico aren't OPEC members. Traders are awaiting a Thursday meeting of OPEC amid speculation the cartel could move to cut production in an effort to reduce a global glut of crude.