On Friday, oil prices fell as concerns about the global glut of stocks continue to weigh on the commodity amid doubts that OPEC will be able to limit production.
Futures of WTI for December delivery fell 1.39% to $ 44.04 a barrel, approaching again the Wednesday’s one-month low at $ 43.07 per barrel.
On London's ICE Futures Exchange, Brent futures for January delivery fell 1.20% to $ 45.28 a barrel, holding the Wednesday’s three-month low of $ 44.40.
Oil prices have fallen after the International Energy Agency said on Thursday that global stocks rose in October by 800 000 barrels per day, to 97.8 million barrels, led by a record production in OPEC and other countries like Russia, Brazil, Canada and Kazakhstan.
The Paris-based organization has maintained its forecast about a rate growth of demand in 2016 to 1.2 million barrels per day, and expects that consumption will increase at the same pace next year, gradually slowing from a five-year peak of 1.8 million barrels per day in 2015.
The commodity still remains under pressure due to increasing skepticism regarding the OPEC’s implementation of the planned cut in production.
At the end of September, OPEC reached an agreement on limiting production within the range of 32.5-33 million barrels of oil per day. However, the organization noted that it is not final and will give detailed information on specific quota until its formal meeting, which is scheduled in Vienna on November 30.
The possibility that the meeting of oil producers may end unsuccessfully is high as Iraq, Iran, Nigeria and Libya said they could not participate in the proposed agreement to reduce production. The lack of a clear position of Russia further strengthens this uncertainty.
The US Energy Information Administration reported that oil inventories increased by 2.4 million barrels last week, to 485.0 million, which is a record high for this time of the year.