Oil prices resumed their decline on Wednesday, with global crude oversupply still dampening investors' sentiment despite occasional rallies. Prices had risen the previous day after a four-day losing streak, as traders weighed a price outlook from the International Energy Agency (
Oil prices resumed their decline on Wednesday, with global crude oversupply still dampening investors' sentiment despite occasional rallies.
Prices had risen the previous day after a four-day losing streak, as traders weighed a price outlook from the International Energy Agency (IEA) and a lowered US estimate for crude production.
Oil prices have collapsed by more than half since mid-2014 with prices languishing under $50 a barrel, hurt by the supply glut and the decision by oil exporter grouping OPEC to maintain output to counter booming US shale production.
The Paris-based IEA, in a report Tuesday, forecast that oil prices would recover to $80 a barrel by 2020.
At around 1200 GMT Wednesday, US benchmark West Texas Intermediate for delivery in December was trading 52 cents lower at $43.69 a barrel.
Brent North Sea crude for December was down 21 cents at $47.23 a barrel.
A strong dollar, fuelled by widening expectations that the US Federal Reserve will raise interest rates next month, has also been keeping a lid on prices.
Oil is traded in dollars and a buoyant US currency would make the commodity more expensive for those holding weaker units, lowering demand and prices.
Caption: Representative Image
Photo: The Guardian
