June 9 (Bloomberg) — Crude oil fell more than $4 a barrel in New York after Saudi Arabia’s oil minister, Ali al-Naimi, called for a meeting of oil producing and consuming nations to discuss how to deal with record prices.
“The increase in prices isn’t justified in terms of market fundamentals,” the Saudi government said today in a statement distributed by the Saudi Press Agency. Oil climbed $10.75 on June 6, its biggest gain ever, because of a weakening dollar and threats of supply disruptions.
“We are seeing increasing dialogue between producers and consumers, which is positive,” said Eric Wittenauer, an analyst at Wachovia Securities in St. Louis. “Thus far we’ve heard a lot but there’s not been much action. I think a lot of what we’re seeing today is just a reaction to the exaggerated gain on Friday as the dollar rebounds.”
Crude oil for July delivery fell $4.19, or 3 percent, to settle at $134.35 a barrel at 2:53 p.m. on the New York Mercantile Exchange. Futures, which reached a record $139.12 on June 6, are more than double the level of a year ago.
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