Oil prices has dropped as traders apparently shrugged off worries about whether production cuts by two key producing nations were harbingers of further restrictions by OPEC members.
On Friday, Venezuela said it would reduce oil output by 50,000 barrels a day to try to stem the recent fall in crude prices. Nigeria on Saturday said it was cutting oil exports by 5 per cent, which the state-owned oil company described as a routine seasonal reduction.
Light, sweet crude for November delivery fell $1.88 to settle at $61.03 a barrel on the New York Mercantile Exchange. November Brent crude on the ICE futures exchange in London fell $2.03 to settle at $60.45 a barrel.
Nymex heating oil futures slipped 5.17 cents to settle at $1.7018 per gallon while gasoline prices fell 4.52 cents to $1.5087 a gallon. Natural gas futures settled at $5.643 per 1,000 cubic feet, up 2.3 cents.
"High inventories are building even in the face of lower runs and macroeconomic figures are also coming out bearish," Raymond Mazzeo, vice president at Energy Merchant LLC. "This is a continuation of the most recent weakness that we've seen."
While the 11-member Organization of Petroleum Exporting Countries decided earlier this month to hold to a 28 million barrel a day output quota, many traders say the group would like to rein in production if crude-oil futures drop below $60 a barrel.