U.S. raw prices closed at a bear market on Thursday, extending a stimulus driven by relieving the concerns of tight global supplies.
Oil prices have grown over the past month, with US prices assembled for nine consecutive sessions, signs of weaker demand and rising UK listings. The market was facing new pressures this week after Washington allowed eight countries to continue to buy Iran's crude, softening the shock of new sanctions.
West Texas Intermediate dropped by 1.7 per cent to $ 60.67 in Thursday's barrel and dropped at least to $ 60.56 in a bargain during the session. The decrease indicated a steep decline compared to four years of approximately $ 76 that was seen in early October. A bear market is defined as a 20 percent reduction in recent height.
Brent's crack down 1.9 percent at $ 70.69 was a barrel. The international benchmark down 18.1 percent of it to four years is high in October.
Here is the sixth session that lost the WTI streak recorded since 1983, according to the Financial Times analysis of the Bloomberg data. WTI has recently dropped for nine consecutive sessions in July 2014. It has never closed for 10 days or more.
Warren Patterson, a merchant strategist at ING, said that oil prices were over and expected to correct up in the near season, but in 2019 "downward pressure will end again."
The renewed sanctions in the United States on Iran's energy, banking and shipping industries this week, a move attached to President Donald Trump's decision to withdraw the US from a nuclear agreement. But news that eight nations accept temporary omissions forced traders to re-evaluate expectations that the sanctions would send a wire to global supplies.
The US Energy Administration Administration's weekly list report on Wednesday revealed that domestic raw stock ponds were expanding for a seventh consecutive week to 432m barrels, the largest since June. The EIA also released a preliminary reading that reached the US production 11.6m barrel a day last week, a high record.
It is expected to produce an average oil of 10.9m barrel a day in 2018, more than 10.7m barrel per day of the previous EIA forecast. The agency also raised its estimate for the production of 2019 to 12.1m barrel a day of 11.8m.
Russia and Saudi Arabia, who, alongside the US count for the three largest producers in the world, have also raised the output this year.
As a result, the International Energy Agency in Paris has gone to global predictions for this year and 2019 in October, identifying threats to economic growth.
An Executive Committee is expected to meet on a Sunday in Abu Dhabi, where officials are expected to discuss market forecasts and possibly consider moving forward in price-raising production.
"There has been a price weakness and the possibility of Opec + to reverse their recent policy of producing as much as they can, to one where they show more restraint," said Mr Patterson. "If any cuts are presented, we believe they will be much more limited in scope."