West Texas Intermediate (WTI) U.S. crude futures were at $36.41 per barrel, down 35 cents after touching $36.12, their lowest since February 2009.
Advertisement
Brent crude futures were down 53 cents at $39.20 a barrel, not far off nearly seven-year lows hit earlier in the session. It said its group output rose by 230,000 bpd in November to 31.7 million bpd.
In its latest monthly report, the Organization of the Petroleum Exporting Countries said 2016 oil supply from outside the group will decline by 380,000 barrels per day to average 57.14 million per day.
Oil prices continue to sink as Opec’s November output reaches a three-and-a-half-year high.
New and spare storage capacity should be able to accommodate the projected extra 300m barrels of stocks in OECD countries, the International Energy Agency said in its Oil Market Report for November.
The crude inventories USA rigs Crude oil fell in Asia on Friday with expectations for any demand rebound thin in the face of significant over supply.
SINGAPORE – Crude prices remained at levels not seen since 2009 in early Asian trading on Friday as oil output in the Middle East continued to rise despite an existing global glut. Oil prices have tumbled over the last 18 months, from a high of $114 last June to their current levels on a glut in supply outpacing demand.
“Too much oil is being produced at the moment”, analysts at Commerzbank AG led by Eugen Weinberg in Frankfurt said in a report. “Out of the total volume 10.7 million bpd will account for Russian Federation against 10.77 million barrels in 2015”, the December report of OPEC says.
PIRA Energy, a NY based global oil consultancy, said it expected crude prices to be under further pressure as onshore oil storage was likely to run out by the first quarter.
Advertisement
Most of that growth came from OPEC producers, notably Saudi Arabia which is battling to reclaim and defend market share from competitors as diverse as US shale producers, Canadian oil sands and Middle East rivals, Iran and Iraq. In 2016 the demand will increase by 1.25 million bpd up to 94.13 million barrels. Gas prices are down 46% this year and 84% lower than their 2008 peak.
