Thursday May 8, 05:15 PM
Oil drops towards $122/bbl after Opec announces no shortage of supplies
LONDON (Thomson Financial) - Oil prices dropped sharply on Thursday afternoon in London after Opec announced it is 'ready to act' if the market sees a need for more crude, while maintaining that there is currently no shortage of supplies despite recent record prices.
Adbullah al-Badri, the Secretary General of the Organization of the Petroleum Exporting Countries said in a statement: 'Opec's spare capacity continues to increase, with the figure currently standing above 3 million bpd. At the same time, crude oil movements indicate that some member countries are unable to find buyers for their additional supply,' he said.
'Opec will continue to be proactive and monitor these developments closely. The Organization stands ready to act if the market shows a need for any further measures,' he added.
At 12:24 p.m., New York-traded West Texas Intermediate crude for June delivery was down 33 cents to $123.20 a barrel, having yesterday hit a record high of $123.93 a barrel.
In London, Brent crude for June delivery was down 29 cents to $122.03 a barrel having earlier touched an all-time record of $122.98.
Oil prices have hit a series of record highs in recent sessions, due to concerns over current market tightness and fears that booming demand in developing nations could begin to outstrip supplies.
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