Crude prices decline on OPEC speculation

Crude oil prices were lower on Monday on the possibility that the Organization of Petroleum Exporting Countries could decide to increase output when it meets next.

The suggestion came from Ali al-Naimi, Saudi Arabia’s oil minister, but it was unclear if the meeting he was referring to is the meeting of OPEC member nations’ heads of state, scheduled for this coming weekend in Riyadh or its next policy meeting on 5 December in Abu Dhabi.

How much a decision to raise production would really mean is also unclear, considering that the US Energy Information Administration has reported that only Saudi Arabia and Iran currently have surplus capacity available.

Near the close of floor trade, West Texas Intermediate crude had dropped $1.67 to $94.65 per barrel after going as low as $93.54 per barrel in earlier trade while Brent crude was $1.41 lower to $91.77 per barrel on the ICE Futures Europe exchange in London.

Nymex December gasoline dropped 4 cents to $2.42 per gallon while December heating oil was also 4 cents lower, to $2.58 per gallon.

January natural gas in New York was 4 cents higher to $8.33 per million British thermal units.