After tumbling all week, crude oil prices surged on Friday in conjunction with U.S. stock futures.
According to MarketWatch, on the New York Mercantile Exchange, light, sweet crude futures for delivery in November jumped $1.05, or 1.3 percent, to $83.75 a barrel in the Globex electronic session. December Brent crude on London's ICE Futures exchange also jumped, rising 91 cents, or 1 percent, to $86.75 a barrel. MarketWatch noted that many investors believe that this will be a short-lived gain for crude oil. The price of the commodity is still down 2 percent for the week.
"Oil prices are likely to resume their downswing after this brief interlude because market participants will doubtless take advantage of the higher price level to jettison their long positions," said Commerzbank analysts to MarketWatch.
Bloomberg reported that it is possible that as prices continue to drop, the gap between supply and demand will start to narrow. Goldman Sachs said that with every 10 percent drop in oil prices, crude consumption grows by 0.15 percent. OPEC still has not stopped its breakneck production and demand projections are still weak for now.
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