8/14/2019 LONDON: World Oil Prices Slid on Friday Close to One-month

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LONDON: World oil prices 

slid on Friday close to one-month lows as traders switched focus to weak demand and

rising inventories in key energy

consuming nation the United States.

 New York's main contract, light sweet crude for delivery in December, fell as low as

75.57 dollars per barrel, before pulling back to 76.41, down 53 cents from Thursday'sclosing level.

Brent North Sea crude for December hit a low of 75.03 dollars a barrel. It later traded at

75.65 dollars, down 37 cents.

"Prices fall to their lowest level in almost a month, pressurised by a bearish set of US

weekly oil data," said Barclays Capital analyst Kevin Norrish in a research note to

clients.

"Yesterday's US data shows a continuation of the trend which has now been in place for awhile, whereby the supply system tries to adjust to continued weak demand."

Crude futures had slumped Thursday on a huge jump in US crude stockpiles indicating

weaker American demand for oil. New York crude had dropped 2.34 dollars and LondonBrent oil shed 1.93 dollars.

The US Department of Energy said American crude oil reserves surged 1.8 million barrelsin the week ending November 6, more than the 200,000 barrels anticipated by the market.

US gasoline or petrol stockpiles unexpectedly jumped by 2.5 million barrels while

distillates, which include diesel and heating fuel, rose by around 300,000 barrels.

In earlier deals on Friday, prices had traded in positive territory, in line with the weaker 

dollar, and in a knee-jerk reaction to Thursday's sharp falls.

The European single currency firmed against the dollar on Friday after news that theeurozone recession has officially ended.

Europe's deepest recession since World War II officially ended on Friday when theworld's biggest single trading bloc joined Japan and the United States in returning to

growth, official data showed.

The weaker level of the greenback makes dollar-priced oil cheaper for buyers using

stronger  currencies. This therefore tends to stimulate demand and prices.

"As long as the dollar does not weaken dramatically, it looks like oil prices will be under 

8/14/2019 LONDON: World Oil Prices Slid on Friday Close to One-month

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selling pressure," said analysts at US-based energy consultancy Cameron Hanover.

"The weak dollar has been this market's sole bullish factor," they added in a note toclients.

Traders also assessed the latest monthly review from the Paris-based International EnergyAgency (IEA), a global energy watchdog advising top industrialized nations.

Global oil demand is heading higher than expected as economic recovery gathers pacenotably in China, but rising prices could derail expansion, the IEA said earlier this week.