Oil Falls After Saudi Arabia Describes Market as “Over Supplied”

Oil declined for the first time in four days in New York after Saudi Arabia, the world’s biggest exporter, said the global market has adequate crude supplies.

Futures slipped as much as 1.7 percent after Saudi Arabia’s Oil Minister Ali al-Naimi said yesterday the “market is oversupplied.” Crude fell 2.8 percent last week on speculation price gains spurred by conflicts in the Middle East will curb economic expansion. The world economy is being hurt by “very high” oil prices, said Nobuo Tanaka, the International Energy Agency’s executive director.

“The price recovery may have been delayed by al-Naimi’s comments, but I think the general trend is for the market to move higher,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. “Investors are cautiously returning as it becomes apparent that Libyan crude may be unavailable for some time, and as unrest continues in other countries.”

Source: Bloomberg

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