The price of Brent crude oil dropped below $87 a barrel on Thursday amid expectations that the Federal Reserve may lift interest rates, putting pressure on the US dollar.
Reuters reported that Brent crude for December declined 65 cents to $86.47 a barrel, while US crude fell 70 cents to $81.50.
Go deeper with GlobalData
Both benchmarks increased yesterday after data revealed that US crude oil stockpiles increased less than expected last week. The news came as huge relief for a market that has been struggling with falling prices in recent weeks due to excess oil supply.
US crude inventories increased 2.1 million barrels last week, below analysts’ expectations of a 3.4 million barrel rise.
Oil prices have dropped about 25% since June forcing the Organization of the Petroleum Exporting Countries (OPEC) to plan for a curb in production.
See Also:
Libya is supporting a cut in production, while several OPEC members, including Iran, Kuwait and Saudi Arabia, have all played down talks of any reduction in oil output.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataOPEC secretary-general Abdullah al-Badri said on Wednesday that it was unlikely there will be a big change in the group’s oil output in 2015.
However, the better outlook for the US economy helped to limit losses in today’s oil prices.
Investors are now waiting on US gross domestic product data, which is scheduled to be revealed later today.
.gif)
