Oil prices down in Asia

According to the survey, OPEC pumped more than 32 million barrels per day this month, up 140,000 bpd from June, reaching the highest monthly level in recent history. Russia, which is not part of OPEC but is the world’s top crude producer and depends heavily on energy exports, hasn’t made any cuts either.

Weinberg said: “We are also hopeful that OPEC will agree on a stricter quota discipline at its December meeting”.

Addressing the concern over Iran’s return to crude markets, the OPEC Secretary General said the new crude oil will be absorbed.

“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.

US oil prices dipped on Thursday (Jul 30), snapping a two-day streak of gains after a top official with OPEC reiterated that the cartel has no plans to cut petroleum production.

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Investors were also digesting a decision by the US Senate Energy Committee to approve a bill to lift a 40-year-old ban on crude oil exports, although it still faces an uphill battle in getting passed by the full Senate. Al-Badri said, “While the prices…no doubt will rebound, it is still too early to say when this will happen”. “The global situation on the markets depends on supply and demand and in today’s case, this is how it’s unfolding”, Novak said. Moscow has never fully cooperated and refused to do so as recently as June.

The Russian rouble has lost half of its value since last year due to weak oil and Western sanctions imposed against Russia over its role in the Ukraine crisis.

The Russian ruble plummeted this week to its lowest point since March as oil prices dropped, sparking fears that inflation could spiral out of control. The European benchmark crude traded at a US$5.06 premium to WTI.

On Thursday, Badri said he expected oil prices to stabilise next year and to remain so over the long term.

“I doubt that prices will go back to $100 per barrel for a few years nor do I think OPEC will allow that until they have achieved their goals of increasing both their market share and overall oil demand growth in the world”, Berman added. “Here we are pursuing the common goals of keeping the market in a balanced and stable state”.