Oil prices do not reflect market fundamentals even after the recent drop in price, and volatility still remains high, a Saudi Arabian oil official said on Sunday. "Current oil prices do not reflect fundamentals of the market, the market today faces a lot of unwarranted volatility," said a Saudi government official, who declined to be named.
Over the past week, oil prices have posted a record fall of more than $16 per barrel, on demand worries and a move by investors to slash exposure to commodities.