Oil Prices Drop as Oversupply of Crude Continues

As OPEC is deciding if a production freeze is a feasible option to increase international oil prices, Saudi Arabia recorded a record high output during the month of July. The ANZ bank reported that Saudi Arabia, the second biggest producer of oil in the world and the largest OPEC country reported an output of 10.67 million barrels a day in July. This is unsettling news for the smaller countries of OPEC that largely favor a production freeze. OPEC has a tentative meeting on the books next month in Algeria to discuss how the organization will bring up oil prices and possibility limit production.

The Australian dollar continued to climb after a wake of bullish data released on consumer confidence in Australia. The Aussie closed the US session against the greenback at 0.7740, its highest level since April after a strong Westpac Consumer Sentiment report Wednesday.