Oil prices sink in Asia on strong dollar, output fears

TIL Desk/Business/Singapore-Oil prices tumbled in Asia today on a strong dollar and after key OPEC producers downplayed the prospects of limiting output at a meeting next month. Iranian oil minister Bijan Zanganeh on Friday said his country wanted its share of the crude market to return to levels seen before Western nuclear sanctions were imposed on it 13 years ago.

The comments suggest Tehran might not join possible efforts by OPEC and Russia to cap production at the gathering in Algeria. Earlier, Saudi Arabia’s energy minister Khalid Al-Falih also downplayed hopes for a cut in production. At around 0850 IST, US benchmark West Texas Intermediate was down 53 cents, or 1.11 per cent, at USD 47.11 and Brent fell 52 cents, or 1.04 per cent, at USD 49.40.

“Oil prices came under pressure following media reports of the Saudi oil minister’s comments that there was limited possibility of any agreement for major intervention during the planned informal meeting of OPEC members next month,” said EY oil and gas analyst Sanjeev Gupta.