Crude oil prices slipped for a tenth straight session on Friday, as rising output and fears of a drop in crude demand due to economic slowdown weighed on the commodity once again.
Crude oil's current losing streak is reportedly its longest over three decades. In October, oil prices had spurted to near four-year highs on concerns over likely shortage in supply due to impending sanctions on Iran. Oil prices have slumped by over 21% since hitting those highs in October.
Crude oil futures for dropped to the lowest level in eight months today, falling to $59.27 a barrel before recovering some lost ground.
December crude oil futures eventually settled at $60.19 a barrel, netting a loss of $0.48, or 0.8%, for the session.
On Thursday, crude oil futures ended down $1.00, or 1.6%, at $60.67 a barrel. Oil futures lost about 4.5% in the week.
Higher output and the Trump administration's decision to soften its sanctions on Iran by allowing eight top crude importers including India and China, to temporarily continue buying Iranian oil, are the significant factors behind oil's slide.
Additionally, a slowdown in global economic growth, triggered by U.S.-China trade disputes has raised concerns that oil demand will see a notable drop in the near term.
Data released by the U.S. Energy Information Administration on Wednesday showed yet another weekly increase in U.S. crude inventories. The report said U.S. crude stockpiles increased by 5.8 million barrels in the week ended October 3, rising much more than forecasts. With last week's surge, crude inventories rose much above forecasts in as many as six weeks out seven.
Traders now await the meeting of the ministers from the Organization of Petroleum Exporting Countries and its allies this weekend. It is expected that the ministers will discuss the possibility of cutting production again next year to support oil prices at $70 a barrel.
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