Crude dropped for a second day after Saudi Arabia signaled that OPEC may leave production targets unchanged at its Oct. 14 meeting and the group lowered its forecast for demand for its oil.
Saudi Arabia's Oil Minister Ali al-Naimi said the market is "very well-balanced" and prices between $70 and $80 a barrel are "ideal." Sanford C. Bernstein & Co. cut its forecasts for 2011 and 2012 oil prices because of high stockpiles.
"Oil has moved beyond OPEC's ideal price range," said Sintje Diek, an oil analyst at HSH Nordbank in Hamburg.
Crude for November delivery was down $0.35, or 0.4%, at $81.86 a barrel on the New York Mercantile Exchange at 1:32 p.m. London time after falling as low as $80.88. The contract reached a five-month high of $84.43 last week. Brent crude for November settlement on the London-based ICE Futures Europe exchange traded down $0.31, or 0.4%, at $83.41 a barrel after falling as low as $82.48.
Oil pared earlier losses as the dollar gave up some of its gains against the euro, buoying demand for commodities. The U.S. currency was at $1.3827 against the euro, after gaining to $1.3775 earlier.
The "weakening of the dollar from short-term highs has brought with it some buyers of oil," said Alexander Ridgers, head of commodities at London-based CMC Markets, which handles more than $150 million a day in U.S. crude contracts.
Saudi Arabia's Oil Minister Ali al-Naimi said the market is "very well-balanced" and prices between $70 and $80 a barrel are "ideal." Sanford C. Bernstein & Co. cut its forecasts for 2011 and 2012 oil prices because of high stockpiles.
"Oil has moved beyond OPEC's ideal price range," said Sintje Diek, an oil analyst at HSH Nordbank in Hamburg.
Crude for November delivery was down $0.35, or 0.4%, at $81.86 a barrel on the New York Mercantile Exchange at 1:32 p.m. London time after falling as low as $80.88. The contract reached a five-month high of $84.43 last week. Brent crude for November settlement on the London-based ICE Futures Europe exchange traded down $0.31, or 0.4%, at $83.41 a barrel after falling as low as $82.48.
Oil pared earlier losses as the dollar gave up some of its gains against the euro, buoying demand for commodities. The U.S. currency was at $1.3827 against the euro, after gaining to $1.3775 earlier.
The "weakening of the dollar from short-term highs has brought with it some buyers of oil," said Alexander Ridgers, head of commodities at London-based CMC Markets, which handles more than $150 million a day in U.S. crude contracts.
