Crude oil futures bounced back slightly during Asian trading hours after an overnight sell off on Tuesday pushed prices to their lowest point in over a year, MarketWatch reported.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in November CLX4, rose 0.98 percent traded at $91.57 a barrel, up $0.41 in the Globex electronic session. November Brent crude LCOX4, jumped 0.61 percent on London’s ICE Futures exchange rose $0.41 to $95.08 a barrel.
Prices remain low, however, and MarketWatch predicted that this could affect crude production in the future.
“If there is a further drop in prices we might see reductions in production not necessarily just from the Organization of the Petroleum Exporting Countries but also from non-OPEC countries for economical reasons,” said Antoine Halff, head of oil industry and markets at the International Energy Agency.
Binary Tribune reported that possible factors for the consistently low crude prices could include weakening demand in Europe and China, recent increases in crude production from OPEC and a strong U.S. dollar. In particular, factory demand in China, which has been a strong indicator for crude prices has been weak, though HSBC and the Chinese government reported that factory growth was up last month.
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