London: Brent crude oil fell more than $3 to a fresh four-year low under $75 a barrel on Thursday after OPEC decided not to cut production, despite a huge oversupply in world markets.
Asked whether the oil producer group had decided not to reduce production, Saudi Arabian oil minister Ali al-Naimi told reporters: “That is right.”
Oil prices have fallen by more than a third since June as increasing production in North America from shale oil has overwhelmed demand at a time of sluggish global economic growth.
Ministers from the Organization of the Petroleum Exporting Countries had been discussing whether to agree a production cut at their meeting in Vienna.
Benchmark Brent futures were down by $2.50 a barrel at $75.25 by 1500 GMT, after hitting a low of $74.36, their lowest since August 2010.
US crude was at $71.50, down $2.19. Reuters
Additional reporting by Henning Gloystein in Singapore.
