OPEC Sees Speculation as Main Cause of Oil-Price Slump

The Organization of the Petroleum Exporting Countries on Friday blamed speculation as the main cause of a decline in oil prices, which have fallen to levels not seen since 2010.

In its bimonthly bulletin, OPEC said that according to its secretariat, "the actions of speculators are again behind much of the price decline." It said speculators had reduced their net long positions by nearly half in August and said the same players had been behind a sharp increase in prices in June.

OPEC's views are its first public comments since the price for its crudes and for the Brent benchmark this week fell to levels not seen since 2010, and raise questions over whether the oil-producer group will cut output when it meets Nov 27.

Its members have so far reacted without coordination, cutting prices in Asia and increasing output as they compete for the growing Asian market.

On Friday, the average price of OPEC's crudes basket, along with the Brent oil benchmark, dropped to their lowest price since December 2010.

Write to Benoit Faucon at [e-mail]

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