Crude trades lower on rising global inventories
Energy prices traded in the red on Friday as the world’s crude stocks continued to grow. Therefore, investment incentives remained low despite OPEC’s efforts to cut global output. The US inventories increase remained one of the highest in the world, offsetting the production cap deal implementation.
Earlier in December, OPEC and other major oil producers led by Russia agreed to cut global output by as much as 1.8 million barrels per day. The effort has been made to stabilize the prices and battle the oil market oversupply that has been prevailing for over two years.
West Texas Intermediate for March delivery shed 0.32% to trade for $53.19 per barrel at 1:14 pm CET. Meanwhile, international benchmark Brent for settlements in March lost 0.56%, changing hands for $55.33 per barrel at 1:31 pm CET.