Oil drops on OPEC comments

FXStreet (Mumbai) – Oil prices declined on Friday as concern over global supply glut intensified after the head of the Organisation of the Petroleum Exporting Countries (OPEC) stated there would be no cuts in production.

Heading for the fifth weekly fall

Crude prices at both the sides of the Atlantic are heading towards the fifth weekly fall due to the double whammy of global supply glut concerns and the strong US dollar.

Abdullah al-Badri, secretary-general of the OPEC, stated rise in demand would prevent a further fall in prices; indirectly stating that member states would not reduce the output to support prices. Badri added that even if OPEC had cut output by as much as 2 million barrels per day (bpd), it would not have helped prices.

At the time of writing, Brent crude for September delivery was down 0.6% at USD 52.95/barrel. Brent Crude is down 1.14% at USD 47.97/barrel.

Oil prices declined on Friday as concern over global supply glut intensified after the head of the Organisation of the Petroleum Exporting Countries (OPEC) stated there would be no cuts in production.

(Market News Provided by FXstreet)