OPEC: Crude Falling After Saudi Arabia 'Unilaterally Lowered' Prices

OPEC last met at Vienna in June

Crude prices have been falling amid reports that Saudi Arabia this week lowered its price for November delivery without consulting other Organization of the Petroleum Exporting Countries (OPEC) members, The Wall Street Journal reports.

The move comes amid reportedly increasing discord amongst OPEC members, which some have suggested amounts to a price war.

On Friday, Brent fell 1.2 percent while West Texas Intermediate prices slipped 1.4 percent, both having fallen 20 and 16 percent respectively from mid-June highs, with some predicting the situation will continue.

"If members don't cooperate, which is likely, everyone is in trouble and prices will drop even further," said one OPEC official from a Persian Gulf state.

The Saudi decision follows a similar one by Kuwait, which was also reported to have recently lowered its prices for November delivery without informing other OPEC members, but the Saudi decision is more significant since its production is more than 3 times that of Kuwait and is by far the largest of all OPEC members.

Some have pointed to disunity amongst Gulf Arab states with respect to various conflicts currently playing out across the Middle East as a contributor to the situation at OPEC.

In addition, it has been commented that Saudi Oil Minister Ali Al-Naimi's seeming lack of interest in participating at OPEC signals a weakening of discourse between members.

Naimi suggested at OPEC's June meeting in Vienna this year that the organisation should reduce the number of annual meetings from two to one.

"He feels there is no point in talking as everyone does as they please," a meeting delegate who was familiar with the matter said.