Oil prices slid more than 3 percent on Friday as USA futures fell below $60 a barrel for the first time since December on renewed concerns about rising crude supplies. Brent fell almost 9 percent for the week while US crude dropped 10 percent, the steepest weekly declines since January 2016. The price of West Texas Intermediate and Brent crude have tumbled over 9% since last week as the large swings for stocks over the same span sending many traders out of the commodity markets as well in a bid to limit risk.
Oil prices were dented by the restart of the Forties pipeline in the North Sea, following an outage the previous day that had sent prices higher when it was announced.
Turmoil on Wall Street also pressured crude.
- Forum Energy ( FET ) stumbled to a more than 23% decline on Friday, falling to a session low of $10.70 a share after the oil and natural gas equipment manufacturer reported Q4 financial results trailing analyst estimates and also issued a Q1 revenue forecast lagging the $258.23 million Capital IQ consensus by at least $5.23 million. The Asian country aims to change that by creating a yuan-based benchmark based on oil sourced from the Middle East, challenging existing standards such as West Texas Intermediate in the USA and Brent crude in London. The session low for USA crude was $58.07. On Thursday, Brent fell 1.1 percent to its lowest close since December 20.
Oil prices touched their lowest in six weeks on Thursday after data showed US crude output had reached record highs and the North Sea's largest crude pipeline reopened following an outage. Drillers have added rigs as oil prices rallied through mid-January.
The U.S.' crude production is projected to reach 11.2 mbpd next year to surpass Russian Federation as the world's biggest crude producer.
OPEC and other producers, including Russian Federation, have cut production since January 2017 to force down global inventories, but these cuts have been offset by rising US oil production. The U.S. Energy Information Administration (EIA) this week said crude production last week rose to a record high of 10.25 million barrels per day (bpd).