Crude oil prices ended the week with another loss as OPEC boosted oil output at a time of global oversupply of the commodity.
According to Bloomberg, Brent crude for December settlement lost $0.88, or 1 percent, to $86.24 a barrel on the London-based ICE Futures Europe exchange yesterday. Prices fell $1.35, or 1.6 percent, to $84.89 at 9:12 a.m on Friday morning. West Texas Intermediate dropped 1.3 percent to $81.12 on the New York Mercantile Exchange yesterday and futures for the commodity shed $1.25, or 1.5 percent, to $79.87 today. The news source noted that a battle for market share has oil producers all over the world upping production in an attempt to undercut their competitors.
"The data confirms that there's a battle over market share. The members are playing chicken with the market," John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said to Bloomberg by phone yesterday.
Reuters added that the strength of the U.S. dollar may also be putting downward pressure on crude oil prices. As the source noted, a strong greenback makes commodities such as oil, which is priced in U.S. dollars, more expensive for buyers using other currencies, weakening foreign demand for the commodity.
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