Oil to weaken until OPEC gives policy signal: Barclays

LONDON (Reuters) – Oil prices are likely to remain under pressure until OPEC gives a clear signal on pricing/production policy, Barclays Capital (BARC.L: Quote, Profile, Research, Stock Buzz) said on Thursday.

“We suspect that prices will continue to test the downside until key oil producers provide more of an indication as to what will drive their policy, in terms of stating what is a fair and defensible price,” the bank said in research note.

Oil reached a record peak of $147.27 a barrel on July 11, but has fallen more than 25 percent since then.

Barclays, one of the first to predict oil’s extended bull run, said the market’s shift into a more negative mood was partly due to a fall in demand from top energy consumer the United States that coincided with an increase in output from top exporter Saudi Arabia.

Reuters