Oil Falls to Below $70 in Post-OPEC Volatility

Brent crude oil fell below $70 a barrel on Thursday as investors searched for a stable price range after a near 40 percent fall since June.

Oil prices have been volatile since the Organization of the Petroleum Exporting Countries (OPEC) said last week it would not lower output despite an oversupplied market.

Brent was down 27 cents at $69.65 a barrel by 1345 GMT. U.S. crude was down 28 cents to $67.10 a barrel, after a 50 cent gain in the previous session.

"If you look at what has happened in the last few days, we seem to be sitting around $70 a barrel," said Olivier Jakob, oil analyst at Petromatrix in Zug, Switzerland. "Crude is now hesitating, trying to find that next 10-dollar range."

Brent hit a five-year low below $68 a barrel on Monday after averaging around $110 a barrel in 2011 to 2013.

More than 30 economists and analysts polled by Reuters after OPEC's Nov. 27 meeting forecast an average oil price of $82.50 a barrel in 2015, down $11.20 from the previous poll. This was the biggest downgrade in average forecasts since the global economic crisis in 2008.

Some expect prices to fall further after bearish comments from major OPEC members.

The Wall Street Journal, citing people familiar with the situation, reported on Wednesday that the cartel's largest exporter and producer, Saudi Arabia, now believes oil prices could stabilise at around $60 a barrel.

The kingdom's state-owned oil company on Thursday cut the January price for its Arab Light grade for Asian customers by $1.90 a barrel versus December to a discount of $2 a barrel to the Oman/Dubai average.

Jakob said Saudi Arabia was targeting a $60 to $70 price range and the kingdom hoped a fall below $60 would be brief.

OPEC's poorer members are not happy.

Venezuelan President Nicolas Maduro said the "fair price" for oil was around $100 a barrel even though it could fall further in coming days.

Nigeria has lowered its oil price budget assumption by 11 percent to $65 a barrel in its 2015 budget from $73, a Finance Ministry spokeswoman said on Thursday.

"There is a very real danger of the downtrend re-asserting itself," said Robin Bieber, director and technical analyst at brokerage PVM Oil Associates. "Treat the market with maximum care and keep exposure limited until the next leg is clear."

By Jack Stubbs and Ahmed Aboulenein, Additional reporting by Florence Tan in Singapore