Oil dropped in a market that is still worried about the high world supply despite OPEC’s efforts to reduce it.
In the New York market, the light sweet crude (WTI) barrel lost 39 cents in contracts for June. Its new price is $ 49.23.
In London, Brent’s barrel fell 36 cents to reach $ 51.60 in contracts to June.
Bart Melek, of TD Securities, said that the market is still moody due to the American inventory rising, especially the one related to fuel.
The high levels of world reserves, especially in the United States, make people doubt whether the excessive supply can be absorbed or not.
The price of crude fell last week despite OPEC attempts to keep January agreement.
However, according to Melek, as long as OPEC members do not deliver an official statement, the market will remain skeptical.
A decision could be made at a meeting to be held by OPEC on May 25th, at its Vienna headquarters.