LONDON: Oil slipped towards US$64 a barrel yesterday and within sight of a five-year low, pressured by signs that already ample supply will be even more plentiful next year.
Crude prices sank on Wednesday as Opec forecast an increasing supply surplus in 2015. US crude inventories unexpectedly rose and Opec’s most influential voice, Saudi Arabia’s oil minister, shrugged off the need for an output cut.
North Sea Brent crude gave up an earlier gain and was down one cent at US$64.23 by 1450GMT. It fell to US$63.56, the weakest since July 2009, on Wednesday.
US crude, which also hit a five-year low on Wednesday, lost 21 cents to US$60.73.
“We may see some technical bounces, but it is too soon to speak of a sustainable price recovery,” said Carsten Fritsch, analyst at Commerzbank, which yesterday cut its 2015 Brent price forecast to US$73 a barrel from US$82.
Brent has fallen more than 40 per cent, or US$50, from its 2014 high reached in June and others in the market say the losing streak could have further to run. Reuters