The price of Brent crude oil declined to a five-and-a-half-year low of $63 a barrel on Friday amid concerns of a worldwide supply glut and dip in oil demand.
Reuters reported that Brent declined 12 cents to trade at $63.56 a barrel, while US crude was down 53 cents at $59.41 a barrel.
"The high oil demand in China stood at more than ten million barrels per day in the last three months."
OPEC slashed its 2015 demand forecast this week to its lowest in more than ten years.
Data from China revealed near-record refinery runs in November despite weaker than estimated factory production growth.
See Also:
The high oil demand in China stood at more than ten million barrels per day in the last three months. The demand is expected to help push the price of crude up; however prices have declined around 40% since June this year.
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 GlobalDataPrices were driven down this week following comments by Saudi Arabia Oil Minister Ali al-Naimi that the kingdom will not cut production, as well as a surprise increase in US crude and distillate inventories.
Citing a trader, Reuters reported that Kuwait has set the official selling price for crude sales to Asian buyers for January at $3.95 a barrel, below an average of Oman / Dubai quotes.
Several traders predict that other OPEC members, like Algeria and Venezuela, may convince the group to hold an emergency meeting in early 2015.