Oil prices dropped again after the fifth-week loss. The price of West Texas Intermediate (WTI) for December delivery and Brent crude for January delivery lost 6.2 percent and 4.9 percent, respectively, during last week.
In the previous week ending November 9, WTI and Brent lost 4.7 percent and 3.6 percent, respectively, and WTI and Brent settled at 60.19 US dollars and 70.18 dollars per barrel, respectively, at the end of the week.
On Monday, oil prices posted an 11th consecutive day of losses, as fears of supply surplus and weakening demand still dominate the global market, despite remarks on the need to cut crude production by Saudi Arabia's energy official. WTI dropped 0.26 US dollar to settle at 59.93 dollars a barrel, while Brent was down 0.06 dollar to close at 70.12 dollars a barrel.
At the Abu Dhabi International Petroleum Exhibition & Conference, Saudi Arabia's Energy Minister Khalid al-Falih said on Monday that "there will need to be a reduction of supply from October levels approaching a million barrels."
He added that the Organization of the Petroleum Exporting Countries (OPEC) and its allies may need to cut crude production by about 1 million barrels per day.
The remarks, however, did not soothe investors who have become jittery about the bearish US crude, as oil prices registered on Monday its longest losing streak on record.
Yet US President Donald Trump believes "oil prices should be much lower based on supply," he wrote on Twitter on Monday. "Hopefully, Saudi Arabia and OPEC will not be cutting oil production."
On Tuesday, oil prices plunged, dropping to its lowest level for the year, as OPEC once again revised its projection for oil demand in 2019 downwards. WTI dropped 4.24 US dollars to settle at 59.69 dollars a barrel, while Brent was down 4.65 dollars to close at 65.47 dollars a barrel.
US crude has been mired into a bear market due to constant pullback in oil prices over the last six weeks. In its weekly report issued Tuesday, OPEC trimmed its forecast for 2019 oil demand for the fourth straight month.
The organization projected global demand for crude will increase by 1.29 million barrels per day (b/d) in 2019, down 70,000 bpd from its forecast last month.
OPEC also said that oil productions from non-OPEC nations will increase by 2.23 million bpd next year, up 120,000 bpd from its last forecast, adding to the ongoing downward pressure on oil prices.
OPEC and its allies were mulling over cutting crude oil production by 1.4 million barrels per day in 2019 to bolster oil prices, according to media reports.
The issue of production cut is expected to be discussed formally at the upcoming meeting of OPEC members and other partnering countries at a high-level meeting scheduled on December 6 in Vienna.
VCG Photo
On Wednesday, US oil prices rebounded 1.01 percent on hope of production cut by OPEC and its allies. WTI gained 0.56 US dollar to settle at 56.25 dollars a barrel. Meanwhile, Brent grew 0.65 dollar to close at 66.12 dollars a barrel.
The rebound of oil prices ended a streak of fall with oil prices for 12 consecutive sessions.
On Thursday, US oil prices gained 0.37 percent amid big rise of commercial crude oil stockpiles and fall of oil product inventories within last week in the US. WTI picked up 0.21 US dollar to settle at 56.46 dollars a barrel. Meanwhile, Brent grew 0.5 dollar to close at 66.62 dollars a barrel.
US commercial crude oil inventories posted sharp increase of 10.3 million barrels in the week ending November 9, according to the latest data issued by Energy Information Agency on Thursday. At 442.1 million barrels, US crude oil inventories are about 5 percent above the five-year average for this time of year.
Motor gasoline stockpiles dropped 1.4 million barrels and distillate fuel inventories fell 3.6 million barrels week on week, indicating strong demand in the downstream.
The report also said that US crude oil refinery inputs averaged 16.4 million b/d during last week, which was 24,000 b/d more than the previous week's average.
US crude oil imports averaged 7.5 million b/d last week, down by 87,000 b/d from the previous week. US crude oil exports averaged 2.1 million b/d last week, down by 355,000 b/d from the previous week.
On Friday, US oil prices closed flat as earlier gains from expected cut of production by OPEC and its partners were pared in the second half of the session. WTI closed flat and settled at 56.46 US dollars a barrel, while Brent crude for January delivery picked up 0.14 dollar to close at 66.76 dollars a barrel.
Last week, the number of active drilling rigs in the US increased by one to 1,082, and the number of rigs operating in US oil fields increased by two to 888 rigs in the week, statistics released by Baker Hughes showed.
The Houston-based oilfield services company reported that the US state of Texas led the gain with an increase of three to 535 rigs. The number for Oklahoma decreased the most by two to 146 rigs.
What's more, Saudi Arabia is loading fewer shipments of crude to the US, a tactic that boosted oil prices in the past. The move means US crude stockpiles are more likely to fall, and shrinking inventories tend to push oil prices up.
The market will keep a close watch on the following US oil inventories as OPEC signaled possible output cuts in 2019.
Meanwhile, the market will focus on the news of any meeting between officials from China and the US aiming at seeking solution to the ongoing trade tensions.