OIL prices fell Friday after news that OPEC was planning to maintain its production near record highs despite depressed prices, as the producer group continued to seek share of an oversupplied market.

    The group, which produces a third of global oil, decided to increase its collective output ceiling to 31.5 million barrels per day (bpd) from the previous 30 million, two OPEC sources told Reuters, in a move that acknowledged that members are already pumping well in excess of the current ceiling.

    The agreement to keep output near record highs was largely expected, but wiped out any remaining hope for bulls that production cuts could push prices higher.

    U.S. crude futures dropped over 3 percent, or US$1.22, to US$39.86. The production outlook appears to be a victory for Saudi Arabia which has been under pressure from OPEC’s poorer members to cut output and help bolster prices. (SD-Agencies)