New York Mercantile Exchange : Sell-off pushed down oil prices to $30 a barrel

Another bad news, US crude futures fell by more than 2% amid a recovering dollar, as a late sell-off pushed domestic oil prices back toward $30 a barrel. Oil prices fell down slowly but sure

As reported from the New York Mercantile Exchange, WTI crude for March delivery traded between $30.80 and $32.42 a barrel, before settling at $30.88, down 0.84 or 2.66% on the day. In spite of a massive spike of 8% on Wednesday, but it can't help, WTI crude still ended the week down by nearly $3 a barrel.

Meanwhile on the Intercontinental Exchange (ICE), brent crude for April delivery wavered between $33.81 and $35.12 a barrel, little bit higher, before closing at $34.02, down 0.44 or 1.28% on the session. Brent oil suffered less damage than their U.S. counterpart on the week, falling approximately 2.75% from its opening level on Monday.

What about the oil prices nearest prediction, Both the international and U.S. benchmarks of crude remain near 12-year lows from last month, when WTI traded at $26.19 on Jan. 20 and brent nearly dipped below $27. Over the last 18 months, crude futures have crashed more than 70% amid a massive supply glut worldwide. Global economic slowdown is the answer

Here is the description from international oil agency, When the International Energy Agency (IEA) released its December oil market report this week, the Paris-based group said Non-OPEC oil supply slipped by 0.6 million barrels per day to 57.4 million on the month, lending support for sharp production declines this year. For 2016, the IEA expects Non-OPEC supply to fall dramatically by an average of 0.7 million bpd.

For sure and More troubling point of view, may be the unexpected declines in demand growth by Non-OPEC members at the end of last year. More decline oil prices is still going on, During the fourth quarter, Non-OPEC demand growth decelerated to a one-year low of 1.0 million bpd, down from near five-year highs of 2.1 million bpd over the previous three months. Consumer demand evaporated in the final months of 2015, in the face of weak economic sentiment among major world powers such as Russia, China and Brazil. Less consume as economic growth slowdown

Source :Investing,  New York Mercantile Exchange, international energy agency, intercontinental exchange