Oil Heading Toward Largest Weekly Decline In A Month

The price of a barrel of oil was trading lower Friday morning as comments from Saudi Arabia's energy minister dampens the prospect of an OPEC-sanctioned production cap.

OPEC members are scheduled to meet next month to discuss a potential limit on how much oil can be exported. Saudi Arabia's oil production hit an all-time high of 10.67 million barrels per day last month.

Meanwhile, Iran is doing all it can to boost its oil production to pre-embargo levels to make up for years of lost oil sales. The country made it clear earlier this year that it refuses to partake in an any production freeze.

Related Link: OPEC: Who Are Its Members, What Does It Do And Why Does It Have The Power To Move The Market?

According to Reuters, Saudi Arabia's minister said late Thursday he doesn't believe "any significant intervention in the market is necessary other than to allow the forces of supply and demand to do the work for us."

Reuters noted the minister's comments have now "dampened expectations" of any sort of intervention in the oil market.

The price of crude oil has fallen more than 3 percent this week and is on track for the largest one-week decline in a month. U.S. WTI crude was lower by 22 cents at $47.11 a barrel, marking a reversal from the strong momentum that recently pushed the commodity over the $50 mark.

"I do not expect the OPEC meeting in September to agree any freeze or affect the oil market in any significant way," Oystein Berentsen, managing director for crude at oil trading firm Strong Petroleum, told Reuters. "This is because it appears key OPEC members remain more concerned about market share."