Crude oil prices fell Thursday after posting gains on the two days prior.
MarketWatch reported that on the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $81.87 a barrel, down $0.33 in the Globex electronic session. December Brent crude on London's ICE Futures exchange fell $0.09 to $87.03 a barrel. Bloomberg added that WTI for December delivery dropped up to $0.99 to $81.21 a barrel in electronic trading and was at $81.45 at 11:46 a.m. London time.
Analysts believe that crude prices rose on Tuesday and Wednesday based on U.S. crude stockpile data turned out to be less than expected, indicating an increase in demand. The gains, however, were doomed to be short-lived as investors pointed at the global oversupply of the commodity as the most likely culprit for crude's inability to sustain any gains.
"We find new resistance [for Brent crude] at $88.81 but find it extremely difficult for prices to even stay at current levels," analyst Daniel Ang at Phillip Futures told MarketWatch.
Bloomberg also noted that many investors believe crude has fallen into a bear market and is unlikely to post any consistent gains. Analysts seem to believe the high levels of production in the U.S. and OPEC will likely keep the commodity in this bear market for awhile.
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