(MENAFN- AFP) Oil prices resumed their downward trend Thursday as dealers eyed weak demand, abundant global crude supplies and the uncertain world economic outlook.
Brent briefly breached $50 a barrel in response to the weaker dollar, but fell back once again on stubborn oversupply worries.
In late afternoon London deals, Brent North Sea crude for February delivery slid 34 cents to $48.35 per barrel, having risen as high as $50.62.
US benchmark West Texas Intermediate for delivery in February meanwhile dropped 80 cents at $47.68.
"Oil prices made an early recovery on dollar weakness but fell back as new sellers used the bounce as an opportunity to come in above the $50 per barrel mark, on the belief supply and demand factors mean oil prices should head lower," said CMC Markets analyst Jasper Lawler.
Crude futures also sank as traders digested news that US stockpiles had risen, adding to long-running concerns about a supply glut and faltering demand.
"Prices have slipped slightly ... as investors continue to weigh up the macroeconomic outlook," added Sucden broker analyst Kash Kamal.
"Brent futures continue to trade under pressure ... as the deteriorating situation in the eurozone and impending Greek elections crimp investment demand from the region."
Greece faces a January 25 snap election that its government has described as critical to the country's future in the eurozone.
Crude futures enjoyed a rare rally on Wednesday, gaining five percent after plunging close to six-year lows.
Analysts said a pick-up had been expected after the commodity had crashed by more than 50 percent since June, largely on global oversupply worries.
Losses accelerated in November after the Organisation of Petroleum Exporting Countries (OPEC) voted to maintain production levels, despite demands from some members to cut output and halt sliding prices.
European benchmark Brent tumbled on Tuesday to $45.19, the lowest level since March 2009.
OPEC said Thursday that it expected the current excess of crude supply responsible for plummeting oil prices to continue through 2015, despite a moderate increase in global demand.
In its monthly report, OPEC said oil prices will continue dropping this year, as "bearish sentiment in the oil market persists as it faces an increasing overhang of at least" one million barrels per day.
The 12-nation cartel -- which produces around a third of the world's crude oil -- says the slight rise in 2015 demand will come largely from reviving economic activity in North America and Asian countries other than China and Japan.
However, OPEC expects next year's jump in demand will be satisfied by production increases planned by non-cartel countries.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.