Oil prices were stable at Europe market on Wednesday within a limited range of trading after the previous day’s biggest daily loss in six months, to settle at a two-week low. Oil prices fell after the International Energy Agency reduced its outlook for global demand growth and its confirmation on the market oversupply in the first quarter of the coming year. Prices are still under negative pressure after an unexpected surge in US crude inventories, according to API data.
By 08:55 GMT US crude trades around $ 55.15 a barrel from the opening level of $ 55.04, and recorded a high of $ 55.21, and a low of $ 54.97.
Brent crude trades around $ 61.60 a barrel from the opening level of $ 61.40, recording a high of $ 61.73 and a low of $ 61.29.
The US crude oil ended yesterday’s trading down 3.1%, in its third consecutive daily loss, and the biggest daily loss since May 25, hitting a two-week low of $ 54.80 a barrel.
Brent contracts lost 2.8% and recorded $ 61.20 per barrel in the lowest since November 3, following the International Energy Agency’s monthly report.
The International Energy Agency has reduced its forecast of growth in world oil demand this year and next year, and attributed that to the decline in consumption rates amid moderate winter conditions, and the acceleration of oil production in some producing countries.
The International Agency cut its forecast for world oil demand growth by 100,000 bpd this year and next year to an estimated level of 1.5 million barrels in 2017 and about 1.3 million bpd in 2018, as stated in its monthly report issued on Tuesday.
The International Energy Agency expects the world supply surplus to widen to 600,000 barrels per day in the first quarter of 2018, followed by a lower surplus of 200,000 bpd in the second quarter of the same year.
In the United States, the US Petroleum Institute announced yesterday that crude inventories in the country rose by 6.5 million barrels for the week ending November 10, in the first rise in the last three weeks, and the biggest weekly increase since last March. Experts expect a decline of 2.2 million barrel.
Traders are looking ahead to the release of official data by the US Energy Information Administration, which is forecast to drop by 2.1 million barrels.
Energy Information Management’s weekly report also includes the US crude oil exports after its decline in the previous report from record levels of 2.14 million barrels, in addition to the oil production levels. Production increased by 67,000 barrels during the week ending November 3, bringing the total production to 9.62 million barrels per day, in a new record for US production.