The price of Brent Brent fell below the five-year $ 70 sign on Friday for the first time in seven months, moving to the edge of the bear market.
Brent crude, a global benchmark, has dropped 1.7% to $ 69.48 a barrel at London's ICE Futures Exchange. On the New York Mercantile Exchange, Forek Intermediate futures fell 1.4% to $ 59.85 a barrel.
The global benchmark was ready to join the VTI on the bear market, following Thursday's loss of a four-year high impact in early October, which is more than 20%.
The bear market is generally defined as a 20% drop from the market peak and Brent has recently been reduced by 19.2% compared to its four-year high in October.
Oil-specific factors, such as increasing production and easing US sanctions on oil in Iran, were compared with wider market concerns in terms of global economic growth and wage growth – leading to sold capital markets in October – to heavy pressures on Oil prices last week.
Sales have been accelerating over the past few days by publishing information on energy administrations with US oil petroleum indicators on a five-month level, and delegates from the Organization of Oil Exporting Countries will have that number when they meet with non-OPEC members this weekend in Abu Dhabi.
ann heisenfelt / European Pressphoto Agencies
Investors will carefully follow the titles resulting from the OPEC + conference, because the failure to signal any reversal in recent increases in output will likely lead to further price pressure, analysts in Komerc Bank said in a note.
However, although many factors are combined to increase oil sales, investors who look beyond short-term factors have a good reason to be optimistic about the jump in prices, analysts say.
Exceptions to the administration of trumpets on Iranian oil sanctions will be temporary, and equity markets are stabilizing. In addition, communication from Saudi Arabia to the Bay of the Earth can be used in spare production to bridge the gap that left Iranian, Venezuelan and Libyan shortcomings in production are exaggerated, says Harri Tchilinguirian, Global Head of Branding Strategy at BNP Paribas.
"While short-term factors have affected the sentiment, we do not think that the Saudians can compensate those countries, and oil demand will increase seasonally, so this may be a good time to enter the oil," Tchilinguirian said.
With investors following Abu Dhabi, attention was also focused on North American production, after the Montana judge ordered the halt to construction on the Keistone KSL pipeline.
No preformulated gasoline blendstock – the reference gasoline contract – fell 0.19% to $ 1.64 per gallon. ICE gasoil changed hands to 650.75 metric tons, a decrease of 2.8%.
To write David Hodari at [email protected]