NEW YORK, March 9 (UPI) -- Crude oil prices drifted lower in the Monday session, a day after OPEC's secretary-general said markets are oversupplied and price movements were cyclical.
The price for Brent crude oil, the global benchmark, was off more than 2 percent from Friday's settle at around $60 barrel, and a bit more than 1 percent less than the previous close, to trade at $59.08 per barrel early Monday.
Oil prices have recovered from a January floor below the $50 per barrel mark, though Brent prices have been unable to sustain levels much beyond $60. The steady decline in crude oil prices since June is a response to a market tilted toward the supply side, thanks in large part to increased production from the United States.
Members of the Organization of Petroleum Exporting Countries in November opted to keep production levels static despite price swings in order to protect their market share. OPEC Secretary-General Abdullah al-Badri told delegates at a Sunday energy conference in Bahrain the crude oil market is in the midst of an "intermittent" period of volatility.
"The supply and demand balance in the first half of 2015 points to an oversupply of around 2 million barrels a day, although the market should return to balance during the second half of the year," he said in his prepared remarks.
A strong U.S. dollar, valued at a historic high when weighed against other currencies, offset concerns about violence in Libya and ongoing nuclear talks with Iran, both OPEC members. The dollar rose in part in response to positive numbers last week from the U.S. Labor Department.
The price for West Texas Intermediate crude oil, the U.S. benchmark, fell back below the $50 per barrel mark early Monday. WTI for April delivery was $49.27 per barrel, down nearly 2 percent from Friday and roughly one half percent from the previous close.
