Crude oil futures slumped Friday, posting a week-long decline, as investors believe plunging US production would reduce a global surplus.
However, analysts warned the price recuperation may not last as more supply will likely come from Iran. Brent crude has dropped 4.5% this week, which has declined more than a quarter since May.
Brent’s December contract settled at $50.13 a barrel, up 40 cents, while November Brent ended at $48.71 a barrel, down 44 cents. Also, US crude November contract closed at $46.85 a barrel, up 47 cents.
The market is catching up with slumping US oil production, which “has resumed its downtrend,” said Daniel Ang, Investment Analyst at Phillip Futures Pte Ltd.
In the first week of October, oil surged sharply on optimism decreasing US production could ease OPEC supply growth.
The material has been provided by InstaForex Company – www.instaforex.com