Brent crude traded around $80 a barrel on Thursday, near its lowest since 2010, after OPEC said demand for its oil would fall next year, while Saudi Arabia remained silent about a possible cut in production.
Global demand for oil from OPEC will drop to 29.20 million barrels per day (bpd) next year, almost 1 million bpd less than it currently produces, the cartel said in its monthly report.
Brent broke below $80 a barrel for the first time since 2010 on Wednesday before settling at $80.38, down $1.29 on the day.
Brent crude for December delivery, which expires on Thursday, had shed another 38 cents to $80.00 a barrel as of 0314 GMT.
“There are not many bullish factors to lift the market now,’’ said Avtar Sandu, senior manager for commodities at Phillip Futures in Singapore.
“But it’s not a one-way street down. Those who have been selling want to take profits around this area,’’ he said.
US crude for December delivery was down 16 cents at $77.02 a barrel.
The spread between the two benchmarks has narrowed more than $3 in the past week. The recent sharp decline in oil prices may cut investment in US shale oil by 10 per cent next year, the International Energy Agency (IEA) said.
Brent’s premium to US crude narrowed to $2.98 on Thursday from as much as $6.42 last week.
All eyes on Saudi
Saudi Arabian Oil Minister Ali al-Naimi broke months of silence on Wednesday to reaffirm the kingdom’s long-standing policy of seeking stable global markets, dismissing talk of a price war.
However, al-Naimi offered no insight on the kingdom’s response to tumbling oil prices, leaving investors guessing about the outcome of OPEC’s next meeting on November 27.
US crude stocks
US crude stocks fell 1.5 million barrels last week to 373 million, compared with analysts’ expectations of an increase of 800,000 barrels, data from industry group the American Petroleum Institute showed.
The US government’s Energy Information Administration will publish its weekly data at 1600 GMT.
Libya abandoned an attempt to restart production at the El Sharara oil field on Wednesday after a pipeline blockage, state-run National Oil Corp said.