Oil prices were lower in Asian trade today after OPEC kept its output ceiling unchanged and voiced concerns over weak global economic growth dragging crude demand.
New York’s main contract, West Texas Intermediate (WTI) light sweet crude for delivery in July, was down 19 cents at $91.78 a barrel in the morning trade and Brent North Sea crude for July delivery shed 34 cents to $100.05.
“It is obvious that the OPEC announcement over the week-end has had a negative impact on oil prices,” Jason Hughes, head of sales trading in CMC Markets, said.
“The OPEC decision will have a greater downside on Brent than on the WTI in the US because of the supply glut there,” he added.
The Organisation of Petroleum Exporting Countries (OPEC), which pumps about 35 per cent of global oil supplies, had on Friday said that it would leave the output ceiling at 30 million barrels per day (mbpd), where it has stood since late 2011, despite actual production exceeding the target.
The cartel, comprising nations from Africa, Latin America and West Asia, is aware that cutting production could raise oil prices and boost their incomes — but that this could also hurt the fragile global recovery.
OPEC said that the outlook for global economic growth and demand for oil has been clouded by the combined impact of Chinese inflationary pressures, the long-running Euro Zone sovereign debt crisis and uncertainty over policy for the US economy.