“Oil market bears may choose not to hibernate”, the IEA said, especially if forecasts for a mild winter in Europe and the United States turn out to be true. But crude oil prices decreased after the inventory report mentioned above due to an increase in inventory levels.
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The supply surplus is 710,000 barrels per day lower than it was in the 2nd quarter of 2015 but is higher than any other quarter since the oil-price collapse began.
Today’s inventory report from US Energy Information Administration (EIA), to be released at 16:00 GMT.
Internationally traded Brent crude futures were at $46.18 a barrel, up 37 cents following a 3.4-percent fall the previous day.
Oil prices tumbled nearly 4% on Thursday, accelerating a slump that threatens to test new six-and-a-half year lows, with traders unnerved by a persistent rise in USA stockpiles and a downbeat forecast for next year.
The world is awash with oil after having built record stockpiles in recent months and slowing demand growth combined with resilient non-OPEC supply could worsen the glut well into next year, the global Energy Agency (IEA) said on Friday.
In another sign of oversupply, a traffic jam of about 40 oil tankers has emerged along the Texas coast.
In a monthly report, the Organization of the Petroleum Exporting Countries said it pumped 31.38 million barrels per day (bpd) last month, down 256,000 bpd from September.
Brent crude oil fell below $45 a barrel for the first time since August.
On Nymex, December gasoline dropped 5.1 cents, or 3.8%, to $1.279 a gallon and December heating oil fell 3.5 cents, or 2.4%, to $1.413 USA a gallon.
“Although global oil demand growth has been exceptionally strong year-to-date, the overall pace of supply side adjustment has been too slow to end a sustained increase in global inventories that we expect to persist through most of 2016”, British bank Barclays said.
“This could protect the market from a supply crunch should there be a lengthy spell of cold temperatures”, the IEA said.
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Precious metals also continued lower, with the COMEX gold futures contract down 0.57% or $6.20 at $1,078.70 an ounce, while spot gold was 0.62% or $6.72 lower at $1,079.54 an ounce.
