Crude hovers near multi-month lows with market in doldrums

Crude hovers near multi-month lows with market in doldrums

Crude hovers near multi-month lows with market in doldrums

Oil prices continued to fall on Thursday, with Brent crude breaking through $55 levels in response to the US Federal Reserve opting to raise rates for the fourth time this year. The contract closed down 7.3 percent on Tuesday.

The weekly inventory cycle is complete and WTI crude oil is on the bull. February WTI futures are on the march north, posting a session gain of more than $1.50 per barrel.

Saudi Energy Minister Khalid al-Falih explained the decline of the oil prices to $ 57 per barrel by the temporary speculative processes in the market under the influence of geopolitical processes and assured that OPEC + would stabilize the market.

On Friday, oil marketing companies Hindustan Petroleum and BPCL gained.

Oil prices fell about 3 percent on Thursday, hitting their lowest in more than a year on worries about oversupply and the outlook for energy demand as a US interest rate rise knocked stock markets. Since reaching multi-year highs at the beginning of October, both crude oil benchmarks have lost more than a third of their value in their steepest decline for three years.

International Brent crude oil futures had yet to trade.

Oil's poised for its biggest weekly drop in a month on concerns of weakening growth and doubts over whether the OPEC+ coalition's output curbs will counter surging US supply.

Those fears receded after the United States granted sanctions exemptions.

The big oil producers in Opec, dominated by Middle East Gulf states reliant on energy exports, have agreed to reduce production to try to push up prices. Meanwhile, doubts persist over the effectiveness of output cuts pledged by the OPEC+ coalition, even as Saudi Arabia expressed confidence in a long-term reduction.

"The bear fest continues", said Stephen Brennock, analyst at London brokerage PVM Oil.

The Organization of the Petroleum Exporting Countries plans to release a table detailing output cut quotas for its members and allies such as Russian Federation in an effort to shore up the price of crude, OPEC's secretary-general Mohammad Barkindo said in a letter reviewed by Reuters.

Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) said 2019 demand for its crude would fall to 31.44 million barrels per day, 100,000 bpd less than predicted last month and 1.53 million less than it now produces.

That is higher than the initially discussed 2.5 percent as OPEC seeks to accommodate Iran, Libya and Venezuela, which are exempt from any requirement to cut.

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