Strong supplies tugged down West Texas Intermediate crude oil prices on Friday, the final day of May, as the energy commodity was set to mark its second consecutive month of losses, according to Bloomberg.
The Organization of the Petroleum Exporting Countries opted to preserve its production target, marking the third consecutive instance that the body has done so. Stockpiles in the U.S., the globe's largest consumer of the energy commodity, pushed to their highest in more than eight decades.
"Prices are down because of OPEC's decision to roll over the quota," partner John Kilduff with energy-focused hedge fund Again Capital LLC in New York told the news source on Friday. "They needed to cut back given rising supplies and the demand outlook but pushed the problem off until December."
At 10:16 a.m. on Friday, WTI crude oil prices fell 1.01 percent, a 95-cent loss to $92.66 per barrel. Brent crude oil prices dropped 0.79 percent, an 81-cent dive to $101.38 per barrel.
Reuters reports U.S. gross domestic production during the first quarter of this year developed less than anticipated while unemployment applications increased, demonstrating the U.S. economy is more fragile than believed.