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Oil Drops as Saudi Arabia Says It Won’t Back OPEC Meeting

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Oil prices slumped Friday and eyed a sizable drop for the week, pressured by news that Saudi Arabia doesn’t back holding an emergency OPEC meeting aimed at stopping crude’s slide.

Crude futures for delivery in October slid by 79 cents, or 1.7%, to $45.13 a barrel, putting the U.S. oil benchmark on pace for a weekly fall of 2%. Brent crude retreated by 76 cents, or 1.6%, to $48.13 a barrel, leaving it down 3% for the week.

Saudi leaders think a meeting of the Organization of the Petroleum Exporting Countries wouldn’t result in concrete action toward defending oil prices, said a Reuters report citing unnamed sources. Venezuela has pushed for such a meeting. News of Saudi Arabia’s stance comes after Arab oil ministers discussed Venezuela’s suggestions in Qatar, the Reuters report said.

Traders also await a monthly report on the oil market from the International Energy Agency that’s expected later Friday. On Thursday, the U.S. crude benchmark rallied 4% as expectations for further declines in U.S. production helped offset a bigger-than-expected weekly increase in domestic crude supplies.

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.
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