SINGAPORE: Crude oil prices fell on Monday as markets were expected to be increasingly oversupplied following OPEC’s decision to keep its production targets unchanged.
The Organization of the Petroleum Exporting Countries (OPEC) agreed on Friday to stick to its policy of unconstrained output, which currently stands above 30 million barrels per day, contributing to a market that is already seeing millions of barrels of crude stored in tankers without a buyer.
“The world’s crude demand/supply remains in excess supplies,” said Yasushi Kimura, president of the Petroleum Association of Japan (PAJ) after OPEC’s decision.
“OPEC projected a continuation of firm demand in global crude demand and judged there’s no need to change current production levels. The decision also may have come about reflecting the view that OPEC’s lone production cuts would be offset by rising US shale oil production,” he added.
