Crude oil supply, global economy at the center of concerns

Oil markets remained weak on Friday, under pressure from concerns that producers are producing more oil than needed in a sluggish economic climate.

WTI (West Texas Intermediate) futures in the United States stood at $ 54.07 per barrel at 0204 GMT, down 56 cents from the previous settlement.

Brent crude futures in the first month were $ 62.64 per barrel, 4 cents higher than their last closing price, despite a limited market due to vacation in Japan.

"Oil prices have come down because concerns about additional oversupply have lowered sentiment," ANZ Bank said Friday.

Brent could return to 61.71 dollars a barrel at its lowest level of 20 November, in the short term, said Reuters technical analyst Wang Tao.

The supply of oil has risen sharply this year, with the top three producers of the United States, Russia and Saudi Arabia pumping over one-third of world consumption, which is close to 100 million barrels per day.

High output occurs as demand prospects weaken as a result of a global economic downturn.

Oil prices have fallen by about 30% since their last highs in early October, as global production began to exceed consumption in the fourth quarter of this year, ending a period of under-supply that began in the first quarter. of 2017, according to Refinitiv data. Eikon.

Saudi Arabia, the leading exporter of crude oil, said it could reduce supply by adapting to declining demand.

"We will not sell oil that customers do not need," said Saudi Energy Minister Khalid al-Falih.

Saudi Arabia is de facto the leader of the oil producer cartel (OPEC), which plans to cut oil supply by up to 1.4 million barrels a day to avoid an overabundance of supply.