The price of Brent crude oil fell during the 70's in the 70's on Friday for the first time in seven months, and was moved to the bear market area.
Brent crude, the global benchmark, fell 1.7% to $ 69.48 per barrel on London's ICE Futures Exchange. On the New York Mercantile Exchange, West Texas Intermediate Futures was 1.4% at $ 59.85 per barrel.
The global benchmark was ready to join WTI in the bear market after the US price on Thursday extended its losses from autumn for four years in early October in addition to 20%.
Bearing markets are generally defined as a 20% decline from a top market and Brent was recently down 19.2% from its own four-year high in October.
Oil-specific factors such as increasing production and softening in US oil sanctions against Iran have combined with wider market conflicts of global economic growth and profit growth – which led to stock market sales in October at sharp press oil prices in recent weeks.
Sales have accelerated in recent days with the publication of data on energy taxes showing US oil bills of five months high and delegates from the organization of the petroleum exporting countries will keep these figures in mind when meeting with non-OPEC members this weekend in Abu Dhabi.
Ann Heisenfelt / European Pressphoto Agency
Investors will keep track of some headlines coming from the OPEC + conference, as failure to signal any return in recent production increases is likely to push further pressure on prices, Commerzbank analysts said in a listing.
But while many factors have combined to lead to oil sales, investors looking beyond short-term factors have had good reasons to be optimistic about price increases, analysts say.
Trump exemptions for Iranian oil penalties will be temporary and stock markets have stabilized. In addition, Saudi Arabia's communications that the Gulf Nations can handle spare production to bridge the gap left by the Iranian, Venezuelan and Libyan production deficits is exaggerated, "said Harry Tchilinguirian, global marketing director for BNP Paribas.
"Although short-term factors have weakened the feeling, we do not think Saudi Arabia can compensate those countries, and oil claims will rise seasonally, so it may be a good time to get into oil," says Mr Tchilinguirian.
Investors looking at Abu Dhabi also focused on North American production after a Montana judgment had ordered a stop for construction on the Keystone XL pipeline.
Nymex-reformed gasoline mix – benchmark gasoline contract – fell 0.19% to $ 1.64 per liter. ICE gasoil switched hands at $ 650.75 a metric ton, down 2.8%.
Write to David Hodari at [email protected]