OPEC Unlikely to Act as Saudi Official States that Oil Market is 'Oversupplied' (USO)

The Organization of the Petroleum Exporting Countries (OPEC) is unlikely to act to dissipate high oil prices, as an official from Saudi Arabia - one of the biggest oil exporters - said that market is "oversupplied." Saudi Arabia's oil minister said on Sunday that the country had cut output by 800,000 barrels per day in March due to oversupply. The U.S. price for gasoline now stands at $3.81 a gallon on average, according to AAA. The highest on record is $4.14 a gallon, set in July, 2008. Saudi Arabia oil minister Ali al-Naimi indicated little would be done in the near-term to help consumers suffering at the pump. "The market is overbalanced ... Our production in February was 9.125 million barrels per day (bpd), in March it was 8.292 million bpd. In April we don't know yet, probably a little higher than March. The reason I gave you these numbers is to show you that the market is oversupplied," Naimi told reporters. The United States Oil Fund ETF

, which reflect the changes in percentage terms of the spot price of light, sweet crude oil, closed higher by $0.43 on Friday, or 0.99%, to $43.71.