Oil prices fell on the European market on Friday to continue their losses for the second day in a row, hitting a two-week low as concerns about oversupply renewed as OPEC output rose to the highest level since the implementation of the global cut off agreement. The lowest level since October 2016.
By 08:30 GMT, US crude fell to 48.10 $ a barrel from the opening level of 48.51 $, recording a high of 48.67 $ and a low of 48.00 $ since July 26.
Brent crude fell to 51.40 $ a barrel from the opening level of 51.85 $ and recorded a high of 52.00 $ and a low of 51.29 $.
US crude for September delivery fell 2.4 % in the third loss this week and Brent crude futures lost 1.8 % after hitting an 11 week high of 53.62 $ a barrel earlier in the week.
This week, oil prices have so far lost 3 %, about to record their second weekly loss in a row, as fears of a global supply glut continue, as tensions between the United States and North Korea escalate.
The Organization of the Petroleum Exporting Countries (OPEC) monthly report on Thursday showed output rose by 173,000 barrels in July, with Libya’s output rising by 155,000 bpd, bringing the total production to 32.87 million bpd, the highest level since the start of the agreement. Cut world production in January.
The Organization raised expectations for its oil demand in 2018 to 32.42 million barrels per day, an increase of 220 thousand barrels from the average forecast last month.
Saudi Arabia and Iraq have agreed to coordinate oil policies to the best interests of OPEC’s oil producers. The agreement came after a meeting between Saudi Energy Minister Khalid al-Faleh and his Iraqi counterpart Jabbar al-Luaibi.
Khalid al-Faleh said the decision to deepen production cuts must be collective, and agreed by all 24 countries to participate in the global supply reduction agreement.
In the United States last week, crude inventories fell by 6.5 million barrels, the sixth weekly decline in a row, to total inventories 506 million barrels, the lowest level since the week ending 21 October 2016, in a strong sign of demand levels in the world’s largest oil consumer .
US oil production fell 7000 bpd to 9.424 million bpd, the second weekly drop in three weeks.