Crude oil prices moved lower in early trading on Friday and dropped below %53 per barrel. Light sweet crude for January delivery moved to $52.94, down $1.48 on the session. Prices hit as low as $52.62 earlier in the session.
Organization of Petroleum Exporting Countries members will meet this weekend in Cairo to discuss another reduction in production to combat rapidly declining prices. However, several ministers have indicated the group may wait to cut production until its Dec. 17 meeting.
Recent OPEC cuts have done little to stop the sharp decline of oil prices. Crude oil has dropped more than 60% from the record high of $147.27 it touched in July. Last week, oil touched below $50 for the first time since early 2007.
Earlier this week, Energy Information Administration data revealed crude oil inventories increased 7.3 million barrels in the week ended Nov. 21. This is much larger than the 1 million barrel build expected by analysts. Gasoline inventories increased by 1.9 million barrels last week.
Oil's hedge appeal was reduced as the U.S. dollar surged versus the euro amid renewed speculation that the European Central Bank will aggressively slash interest rates in December following some tame economic data. The greenback also climbed versus the pound.
There are no major economic reports due from the US on Friday. U.S. equity markets will close early on Friday, following yesterday's Thanksgiving holiday. The NYMEX will run on a normal schedule as it did on Thursday.
At the pump, gasoline prices have continued to tumble. The latest AAA data showed prices have dropped to $1.835 on average across the U.S. This is down from $2.589 a month ago and $3.096 a year ago.
