Brent crude oil fell below $107 a barrel on Friday in a third day of falls on concerns over increasing supply and faltering demand despite signs of faster economic growth in China.
Worries that the escalating war in Syria could disrupt Middle East oil supplies pushed Brent to a six-month high above $117 in August.
Prices have dropped more than $10 a barrel since then and some analysts see further falls ahead.
US light crude oil has been depressed by a seasonal dip in demand and increasing domestic oil production that has boosted stockpiles, particularly in the US Gulf coast.
Brent crude for December was down 20 cents a barrel to $106.79 by 0845 GMT, down three per cent on the week.
US crude oil was up 20 cents at $97.31, although still down around 3.5 per cent on the week, its biggest weekly loss since June.
“We are seeing some consolidation after several days of falls.
“But the fact that prices have not bounced back is quite bearish.
“The risks are still to the downside,” said Commerzbank senior oil and commodities analyst, Carsten Fritsch, in Frankfurt.
Oil supplies have improved in recent weeks with higher output from several producers in the Middle East and North Africa and several analysts see oil heading lower.
“Balances are not as tight as we or the market had expected,” said Virendra Chauhan, oil analyst at London-based consultancy Energy Aspects.
“The worst of this year’s supply shortfalls is now behind us, with maintenance at non-OPEC fields largely complete and some of the lost OPEC production also coming back in Libya, Nigeria and Iraq,” Chauhan added.
Reuters/NAN.
Trending
- Iran media reports air defences shoot at flying objects over Isfahan
- Kenya’s armed forces chief killed in helicopter crash
- Troops repel IPOB/ESN terrorists attack in Okija, neutralise several fighters
- Bandit leader seeks peace in new video after military attacks
- 2024 UTME: Parents obey JAMB order to steer clear CBT centres
- 2024 UTME: Stop patronising fraudsters, JAMB warns candidates
- Pastor seeks divorce over alleged domestic violence
- Bobrisky, Cubana Chief Priest and Indabosky Bahose, by Tunde Odesola