Oil prices fell more than one per cent on Thursday as the Organisation of Petroleum Exporting Countries (OPEC) ended its meeting without setting a ceiling for its production.
Market participants had gathered in Vienna, Austria for signs of agreement on reviving the group’s collective output quota proposed by Saudi Arabia or the introduction of individual member country quotas suggested by Iran.
But sources within OPEC said the organisation failed to agree on output policy or set a new ceiling.
Still, Saudi Arabia promised not to flood the market with extra oil, suggesting a softening of its previous stance where it rigorously pumped to defend its share of a market.
The market is currently oversupplied by an estimated 1.5-2.0 million barrels per day.
“We will be very gentle in our approach and make sure we don’t shock the market in any way,” new Saudi Energy Minister Khalid al-Falih told reporters.
“There is no reason to expect that Saudi Arabia is going to go on a flooding campaign.”
Iran’s Oil Minister Bijan Zanganeh, who came to Vienna vowing not to drop output, said he was generally happy with the outcome of the meeting.
He also said he saw no signs that other member countries wanted to boost output steeply.
Brent crude oil futures were down 54 cents, or 1 per cent, at $49.18 a barrel after touching an intra-day low of $48.84.
U.S. West Texas Intermediate (WTI) crude futures fell 60 cents, or 1.2 per cent, to $48.41, after tumbling more than $1 earlier.
Some traders said crude prices were partly pressured by the dollar’s recovery following comment by European Central Bank President Mario Draghi that was considered bearish for the euro.
