The price of Brent crude oil dropped by more than $1 to near $78 a barrel on Monday, following news that Japan is now in recession.
Brent crude dropped $1.08 to $78.33 a barrel, while US crude for December delivery declined 78 cents to $75.04 a barrel, Reuters reported.
“Kuwait, Saudi Arabia and several other OPEC members continue to downplay talks of any reduction in oil output.”
Weak consumption and exports unexpectedly shrank Japan’s GDP by an annualised 1.6% in the third quarter of this year.
The Organization of the Petroleum Exporting Countries (OPEC) is due to meet in Vienna, Austria, on 27 November to discuss its oil production policy.
Kuwait, Saudi Arabia and several other OPEC members continue to downplay talks of any reduction in oil output.
Iran oil minister Bijan Namdar Zanganeh accused several OPEC members of finding ways to defend their refusal of reducing production to help stabilise oil prices.
The International Energy Agency’s monthly report recently revealed that prices may dip even further next year.
Investors are also watching for hints of declining oil prices, affecting production from tight oil projects in the US.
Production in North Dakota, US, increased more than 50,000 barrels per day (bdp) to 1.18 million bpd in September.