Oil prices dropped as the Organisation of the Petroleum Exporting Countries (OPEC) ended a meeting without any agreement to reduce the production.
The cartel’s output makes up around 40 percent of the global crude production. OPEC maintained it output quota of 30 million barrels per day at June’s meeting. The ceiling was breached routinely by the group, Xinhua reported.
The group will maintain its current production, about 31.5 million barrels a day. The statement released on Friday said the group will “closely monitor market developments in the coming months.”
The organisation observed that global economic growth is currently at 3.1 percent in 2015 and is forecast to expand by 3.4 percent next year.
In terms of supply and demand, it was noted that non-OPEC supply is expected to contract in 2016, while global demand is anticipated to expand again by 1.3 million barrels per day.
The West Texas Intermediate for January delivery moved down $1.11 to settle at $39.97 a barrel on the New York Mercantile Exchange.
Brent crude for January delivery decreased $0.84 to close at $43 a barrel on the London ICE Futures Exchange.