Benchmark Brent crude futures fell below the $46-a-barrel mark, trading down 1.7 percent at $45.79 a barrel, down 80 cents, at 1045 GMT.
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Oil prices rebounded slightly Thursday after tanking the previous day, but gains were capped by USA stockpiles data and the prospect of rising output in Libya and Nigeria, dealers said.
Both contracts have fallen 8-9% in just one week, underlining how volatile the oil market is. Last week’s data showed US drillers had added seven oil rigs in the week to September 9, bringing the rig count to 414, the most since February.
“Crude futures are taking on an increasingly bearish appearance”, said Jim Ritterbusch of Chicago-based oil markets consultancy Ritterbusch & Associates.
Their fears were confirmed this week by the International Energy Agency (IEA), the US Energy Information Administration (EIA), and the Organization of the Petroleum Exporting Countries (OPEC).
“Oil arrested a slump that had seen it fall. for two consecutive days”, said analyst Chris Todd at brokerage Love Energy, noting prices were buoyed by the USA inventory data.
“Exports of Nigerian Qua Iboe crude, which have been under force majeure since July, will reportedly resume by late September/early October”.
At the same time, Nigeria-which is the African continent’s biggest crude producer-appears set to also increase its oil exports, traders said.
Baker Hughes U.S. rig count data for the week to September 16 is due on Friday.
The United States has witnessed more growth in daily output than any other major producer thanks to the boom in shale oil production. The rate is going down also because the Loonie is trading in the red versus the USD, the USD/CAD has reached new highs today, adding more pressure on the Oil price.
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Analysts said the rise in crude palm oil prices was mostly attributed to building-up of positions by speculators, driven by a firming trend in the global market. The Oil is going down again because the US supply has increased, the price has decreased even if the US Crude Oil Inventories have dropped to -0.6 million barrels in the previous week, the indicator has come much below the 2.8M estimate.
