Published Date : Nov 20, 2015
A slip of more than 2$ was recorded for oil on Friday. This has stretched the loss of the week to the longest it has been for eight months. The fall was created due to the mounting pressure of surplus stockpiles of crude on both land as well as sea.
Oil prices fell a minor length after a report by Baker Hughes, which stated that the total amount of oil rigs operating in the U.S. has increased for the first time in eleven weeks.
A total rig count was registered at 574, up 2 rigs in the weekly count, in comparison to the 1,578 rigs that were in operation at the same time in 2014.
U.S. crude managed to trade in at a bit above US$40 per barrel, while the Brent benchmark was lower US$2, after almost six and a half years of setting lows. The overall fall broadened over to oil products with the U.S. gas prices falling to nearly ten month lows.
The oil prices have slipped in at least 7 of the last 8 months and the losses have been ramping up after data revealed by the U.S. showed that there was a weekly rise for the seventh time in crude inventories owned by the U.S. Stockpiles reached close to the record highs that were recorded in April.
The IEA stated with a sentiment that was increasingly bearish, that there has been a record surplus of over 3 billion barrels of oil and crude around the world.