US crude oil prices fell for the 10th time in a row on Friday, plummeting deeper into the bear market area and destroying the benchmark gains for the year.
The 10-day decline is the longest defeat in the US since mid-1984, according to the refining data.
Commodity futures fell for a fifth consecutive week as rising output from major producers and deteriorating oil demand outlook fueled a sell-off spurred on by the broader October market slump. The decline marks an astonishing turnaround from last month, when oil prices reached nearly four-year highs as the market prepared for potential bottlenecks when US sanctions on Iran were reinstated.
“The market’s not tight. I think there are windows where you could perceive it to be tight, and I think the markets got caught into that” said Christian Malek, Head of EMEA Oil and Gas Research at J.P. Morgan, on Friday to CNBC. “The reality is that we’re still in a world where we’re overproducing and we’ve got surplus”
The US crude oil company West Texas recorded a decline on Friday by 48 cents to $ 60.19. The order has dropped by almost half a percent this year. It fell to $ 59.26 on Friday, the lowest level in about nine months.
WTI fell into a bear market during the previous session, dropping $ 20 to $ 76.90 from its nearly four-year high last month.
The international benchmark Brent Commodity was trading at 39:29 at 2:29 pm at $ 70.26. ET up 19 percent from its recent high. The contract reached a seven-month low at $ 69.13 on Friday.
Brent has dropped in nine of its last ten sessions, but has still risen more than 4.5 percent this year.
Oil prices rose in early October amid fears that US sanctions on Iran, OPEC’s third largest oil producer, would eradicate global oil supplies. The Trump government, however, granted temporary exemptions to sanctions for eight countries, which allowed the export of Iranian crude oils to continue, and concerns over undersupply eased.
Analysts now assume that the export loss from Iran is less severe than expected.
Meanwhile, the world’s three leading manufacturers, the USA, Russia and Saudi Arabia, have achieved record numbers. Other OPEC members and export nations are also turning the faucets.
Preliminary data this week suggest that US production reached an all-time high of 11.6 million barrels a day.