Oil falls on speculation OPEC won’t cut production

Brent crude oil fell on Monday due to speculation that the Organization of Petroleum Exporting Countries (OPEC) will not cut production.

OPEC was expected to cut production before a meeting scheduled for next month in Vienna, Bloomberg reports.

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“The harsh reality remains, we’re producing anywhere from 1.5 million to 2 million barrels a day more oil than there’s demand for,” Tom Finlon, Jupiter, Florida-based director of Energy Analytics Group LLC, told Bloomberg News.

“The statements from Saudi Arabia and Kuwait make it clear that they aren’t doing anything until the meeting, which is more than a month away,” he added.

The West Texas Intermediate (WTI) price remained relatively unchained.

The recent drop in oil prices has raised questions about the future of the U.S. oil boom. Producers have said if a drop continues and the gap between WTI and brent crude widens there could be production impacts.