Oil prices stabilized on Thursday in international markets below the $71 per barrel level after falling more than two percent the day before under the pressure of a weekly report from the U.S. government that showed weak demand in the world’s largest energy consumer.
Prices for January delivery of crude oil remained nearly unchanged in the U.S. market at $70.60, after falling nearly two dollars on Wednesday, touching the lowest level since early October of $70.13. In the London market, prices rose by 12 cents to $72.51. On Wednesday, prices fell after the weekly report from the U.S. government showed an increase in refined product inventories while crude oil stocks unexpectedly decreased."I think we have a pause today after sharp losses in previous days," said Carsten Fritsch, an oil analyst at Commerzbank in Frankfurt.
"The $70 level is holding for now, but I think there is potential for further price declines," he added. On Thursday, additional signs of rising oil supply in the world emerged after Saudi Arabia fully restored supplies to at least two Asian buyers for January and maintained contracted volumes for the other six, industry sources reported. The Organization of the Petroleum Exporting Countries (OPEC) separately reported that the price of its reference basket of oil was $73.70 on Wednesday, which is $1.10 less than the day before. (H)
