Opec warns market oversupplied as it holds fire on the debt crisis

GLOBAL oil markets are oversupplied but OPEC thinks it is too early for the group to take action to halt a recent decline in prices as fallout from the euro zone debt crisis sets in.

OPEC secretary general Abdullah al-Badri yesterday said global oil markets were oversupplied, urging greater compliance among members of the group. “We have a lot of crude oil on land and offshore,” Badri told reporters on the sidelines of the Arab Energy conference in Doha. “OPEC already took action in December 2008 to reduce 4.2m barrels (a day),” he said. “We just have to abide by that... I am calling for more compliance.”

US crude oil futures settled at $75.11 a barrel on Friday, posting their largest weekly loss in almost a year and a half, as worries grew the Eurozone debt crisis might derail the global recovery.