Brent fell 70 cents at $52.61 a barrel, while the US light crude dipped 90 cents at $47.62 a barrel, Reuters reported.
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The pricing policy of Russian Federation and the OPEC oil production cuts were not discussed at the meeting with El-Badri, said Novak.
The heavy drop came after Abdullah El-Badri, secretary- general of the Organization of Petroleum Exporting Countries, said the group would not cut output in response to lower prices. The US benchmark following ETFs like the United States Oil Fund LP (USO) and the ProShares Ultra DJ-UBS Crude Oil (UCO) also fell in the direction of crude oil prices.
Brent futures for September delivery were down 13 cents at $53.18 as of 0420 GMT after settling down 7 cents in the previous session. We decided to keep our production at 30 million barrels a day, the same as before.
“Much of the world’s over-production is now coming from OPEC”, said Berman. Overall, U.S. stocks are up 145 million barrels from a year ago.
The increase in crude oil on the global market comes as the world’s economy struggles to emerge from the last fiscal crisis.
He added that OPEC was emphasising that it is fighting for market share. Iran reached an agreement with the global community this month to remove sanctions imposed over concerns that its nuclear programme could be used for military purposes.
“We are also hopeful that Opec will agree on a stricter quota discipline at its December meeting”, Weinberg said.
SINGAPORE – Oil prices fell in Asian trade on Friday as concern over global oversupply intensified after the head of oil producers’ cartel Organisation of the Petroleum Exporting Countries (Opec) indicated there would be no cut-back in production, although a fall in the US dollar put a floor under prices.
“Although we are seeing prices adjusting downwards, this (is) likely (to) stem from some adjustments of a strong dollar and adjustments to trading positions as oil finds a bottom”, Phillip Futures investment analyst Daniel Ang said in a note on Friday.
At its most recent meeting in Vienna in June OPEC kept its output levels despite a supply glut, which has depressed oil prices.
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“Despite current uncertainties, signs of a more balanced market in 2016 may provide much desired stability to the oil market in the longer-term”, the statement said. Total average U.S. crude oil production for the week ending July 24 was 9.4 million barrels per day, an 11.4 percent increase year-on-year.
