WTI settled down US$1.33 (RM5.68) at US$41.71 (RM178) a barrel, trading just over 280,000 lots, Reuters data showed.
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Speculative funds are now holding short positions equal to more than three and a half days’ worth of global oil demand in NY and London, the paper reports.
On Nov. 23, Saudi Arabia said it was ready to “cooperate with all oil producers and exporters, from inside and outside of OPEC, to preserve the stability of the market and prices”, according to a statement.
“US crude oil inventories are not increasing as much as before, so this is giving the market some bullish sentiment”, said Daniel Ang, an investment analyst with Phillip Futures in Singapore.
In addition, the second largest oil producer, Saudi Arabia, has hinted that it may finally be ready to cut oil production at the OPEC meeting next week.
Production volume at OPEC member states is at an all-time high of more than 31 million barrels a day, and Russian Federation, which is not an OPEC member, is also boosting output.
The increased military operations against IS and the crisis between Turkey and Russian Federation, like most confrontations that take place in the Middle East, have raised worries about disruption to oil production and shipments.
Moscow yesterday said retaliatory measures will focus on using its leverage to tighten the screws on Turkey’s economy, including the halting joint economic projects, restricting financial and trade transactions and changing customs duties.
Gold futures for February delivery declined 1.3 percent to settle at US$1,056.20 an ounce at 12:45pm on the Comex in NY.
Following the data, U.S. benchmark West Texas Intermediate for delivery in January was down 17 cents at $42.70 a barrel. They are up 5.6 per cent so far this week, but have plunged 8.4 per cent since the beginning of the month.
Some OPEC officials on Friday questioned an upbeat demand forecast from its researchers, expressing scepticism there will be a quick easing by 2016 of the global supply glut in oil.
Downward pressure on the oil market this week was capped by the shooting down by Turkey of a Russian fighter jet on the Syrian border.
During Friday’s trading session, Crude oil futures fell yet once again.
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Australian shares dipped 0.5 per cent. South Korea’s Kospi lost 0.2 per cent and Hong Kong’s Hang Seng dropped 0.5 per cent. Japan’s Nikkei shed 0.5 per cent.
