Oil Price lower as market looks to Opec for developments
(MEBG) - Oil prices lost some ground July 31 as the market awaited signs from Opec about its production policy.
International benchmarks Brent crude futures for September delivery last traded 46 cents down at $26.90 a barrel. U.S. light crude futures were 68 cents lower at $27.50.
The market clearly confused over Opec’s apparent inability to maintain unity following a decision by key member Saudi Arabia to raise output and cool prices.
Opec President Ali Rodriguez, who has repeatedly insisted that Saudi Arabia would not act alone to tame prices, warned over the weekend that oil prices may crash this winter due to the cartel oversupplying the market He also said that “some sources" had found Opec production to be exceeding the agreed output ceiling by more than 700,000 bpd.
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