US oil shed 7.59% to $29.77 today. This comes after last week’s rally that saw oil jump close to 10 percent.
The slide came as the head of OPEC called for all oil-producing nations to work together. OPEC’s Secretary General, Abdullah el-Badri, said both OPEC and non-OPEC oil producers need to tackle oversupply to help prices rise.
“It is vital the market addresses the issue of the stock overhang. As you can see from previous cycles, once this overhang starts falling then prices start to rise,” he told a conference in London.
Despite the ongoing refusal of Saudi Arabia to cut production, Mr al-Badri maintained that countries outside the cartel are the ones to blame for the global over-supply.
“Yes, [OPEC] provided some of the additional supply last year, but the majority of this has come from non-OPEC countries,” el-Badri said.