Investing.com - Crude prices dropped in Asia on Monday as investors noted Saudi Arabia does not see the need for a major efforts by global producers on output, fanning oversupply concerns.
On the New York Mercantile Exchange, crude oil for delivery in October dropped 1.18% to $47.08 a barrel. On the ICE Futures Exchange in London, Brent oil for October delivery fell 1.18% to $47.08 a barrel.
Overnight, oil futures managed to hold on to modest gains on Friday, but suffered a decline for the week after the Saudi energy minister shrugged off the need for OPEC to intervene to stabilize markets.
Reuters reported late Thursday that Saudi Arabia's Energy Minister Khalid al-Falih told the news agency in an interview that he does not believe any "significant intervention" in the oil market is necessary.
His reported comments come ahead of an informal meeting of the Organization of the Petroleum Exporting Countries in Algeria late next month, during which major oil producers are expected to discuss a potential output freeze.
Traders also assessed the likelihood of an interest-rate increase at the next Federal Reserve meeting September, following comments from the top two officials at the central bank.
An increase in U.S. interest rates tends to lift the dollar, which would make oil more expensive for traders who conduct business in other currencies.
Analysts and traders remain skeptical the meeting would result in a coherent effort to reduce the global glut.
An attempt to jointly freeze production levels earlier this year failed after Saudi Arabia backed out over Iran's refusal to take part of the initiative, underscoring the difficulty for political rivals to forge consensus.
Meanwhile, market players continued to focus on U.S. drilling prospects, amid indications of a recent recovery in drilling activity. According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. last week was unchanged at 406. That followed eight straight weeks of increases.