The Brent crude oil price went up above $78 a barrel, according to the ICE trading system’s data on Fridayç SİA reports quoting the TASS.
Meanwhile, as of 10.05am Moscow time (07.05am GMT), the price has dropped below $77 a barrel. Since June, the Brent oil price has plunged around 30%.
The International Energy Agency (IEA) forecasts that oil prices may fall below current rates because the oil market is entering a lower demand period, TASS reported earlier. According to the EIA forecast, oil consumption in the first quarter of 2015 will shrink by 1% to 92.6 million barrels a day. Meanwhile, the IEA noted that the current situation intensifies pressure on the Organization of the Petroleum Exporting Countries (OPEC), because this will become more difficult for the organization to give up reducing production quotas.
Meanwhile, the US Energy Information Administration (EIA) has slashed its Brent crude estimate for 2015 to $83.42 from $101.67, citing an increase in oil production in the US and rising crude oil supplies from Saudi Arabia. The EIA has cut its forecast for global oil consumption this year to 91.38 million barrels per day.
The cuts in forecast on global demand for oil come amid speculations on the threat of “price war” in OPEC, which accounts for about 40% of global oil supplies.
The market is shrinking and oil suppliers start fighting with each other for the share in global sales, analysts say.