Oil prices sank at the opening of the Asian session today (14/12), after last Friday's International Energy Agency (IEA) issued a projection of the overflow will increasingly global oil supplies next year.
Late last week, Brent as a benchmark global oil prices traded less than USD 38 per barrel for the first time since December 2008 after the IEA stated that demand growth is slowing, while OPEC output remains high which refers to the abundance of larger supply within a few months forward. West Texas Intermediate (WTI) also settled at around 35 US dollars per barrel while the number of oil wells in the US recorded the lowest level as last April 2010.
On the Mercantile Exchange, WTI delivery next month fell 25 points, or about 0.72 percent to 35.35 US dollars a barrel, having fallen 3.1 percent last week. Brent oil futures also slid 0.74 percent to the USD 37.66 per barrel, continuing decline 4.5 percent on Friday (11/12). Since the meeting of the Organization of Petroleum Exporting Countries (OPEC) December 4 last, the two benchmark oil prices are weakening every day.
In a December report, the IEA projected oil demand growth in 2016 will be very slow. These conditions will widen the gap between the supply-demand imbalance in global oil. Next year, the IEA estimates that global demand will only grow by 1.2 million barrels, down from a previous forecast of 1.8 million barrels per day.
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