Oil prices fell to multi-month lows on Friday as global supply increased and investors worried about the impact on fuel demand of lower economic growth and trade disputes.
Benchmark Brent crude fell below $70 a barrel for the first time since early April, down more than 18 percent since reaching four-year highs at the beginning of October.
Brent dropped $1.52 to a low of $69.13 before recovering to around $69.60 by 1135 GMT, down 4.5 percent for the week and approaching 16 percent this quarter.
US light crude fell to an eight-month low below $60 a barrel, hitting a trough of $59.28, down $1.39 and off more than 20 percent since early October. That puts the US contract officially in “bear market” territory, borrowing a definition commonly used in stock markets.
“There is no slowing down the bear train,” said Stephen Brennock, an analyst at London brokerage PVM Oil. “Instead, the energy complex has extended a rout driven by swelling global supplies and a softening demand outlook.”
Oil peaked in October on concerns that US sanctions on Iran that came into force this week would deprive the oil market of substantial volumes of crude, draining inventories and bringing shortages in some regions.
But other big producers, such as Saudi Arabia, Russia and shale companies in the United States, have increased output steadily, more than compensating for lost Iranian barrels.
The United States, Russia and Saudi Arabia are pumping at or near record highs, producing more than 33 million barrels per day (bpd), a third of the world’s oil.
نستخدم ملفات الكوكيز لنسهل عليك استخدام مواقعنا الإلكترونية ونكيف المحتوى والإعلانات وفقا لمتطلباتك واحتياجاتك الخاصة، لتوفير ميزات وسائل التواصل الاجتماعية ولتحليل حركة المرور لدينا...اعرف أكثر