Oil futures slid on Thursday for the fifth time in six days after OPEC reduced its expected price forecasts of oil, but some analysts noted that the decline was muted by positive factors in the market.
West Texas Intermediate futures fell by about 1.3 percent or $1.03 to reach $77.65 per barrel, while Brent's decline was just 0.6 percent or $.51 for a new total of $82.44, according to Bloomberg. The reasoning is likely due to OPEC cutting every forecast it has made for future crude demand for every year from 2016 to 2035. Reports that Libya announced a resumption of crude pumping in its biggest oil fields further affected the market.
"Demand is down and supply is up, we are in a situation where we will continue to go lower," Tariq Zahir, New York-based commodity fund manager at Tyche Capital Advisors, told the news source. "The stronger dollar is weighing on the market. We are selling any rallies that we get, which has been a good trade."
Analysts have seen signs that the market has seen increased demand for crude oil, as weekly crude runs rose this week by 356,000 barrels per day, MarketWatch reported. This may lead to an end in seasonal downturn, though it will take similar trends in the next few weeks to confirm the upturn.
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