Crude prices are steady after five days of drops
On Friday, crude prices soared, stabilizing after five straight days of drops, though a soar in American crude inventories as well as doubts over the ability of crude producers to coordinate production cuts continued keeping a lid on the energy market.
Brent crude futures rose 0.28%, trading at $46.48 a barrel, while American West Texas Intermediate futures added 0.25%, being worth $44.77.
In spite of the moderate increases, market participants told that the overall sentiment was quite bearish especially considering the drop in oil prices for the last five days – perhaps, the longest losing run since June. Crude futures have dropped more than 13% since their recent high in mid-October.
The ongoing market dynamic of softer demand as well as stronger supply is going to become a more dominant driver of crude prices as the overall impact of OPEC's verbal interventions starts fading and hopes for coordinated cuts are currently readjusted.