Also pushing down oil futures are worries about the slowing pace of the globe's recovery from the economic recession. But al-Hayat, a London-based newspaper, did not name sources when stating high-level Organization of Petroleum Exporting Countries and officials in the industry mentioned Saudi Arabia's intention to heighten its output. OPEC this week conducted meetings in Austria and member nations were deadlocked over whether to increase or reduce production.
"The expressed intent of the Saudis has been to make up for the missing Libyan barrels and to cap oil prices," Adam Sieminski, chief energy economist at Deutsche Bank in Washington, told the news service. "In addition to the Saudi news, most economic indicators have been looking terrible."
At 12:30 p.m. on Friday, crude oil futures dropped 1.25 percent, a $1.49 reduction to $118.08 per barrel.
Dow Jones Newswires reports Saudi Arabia raising its output demonstrates the nation's resolve to meet world demand as the country is the globe's biggest exporter of crude oil.
Six OPEC nations represented in Vienna did not want to increase production.