Oil prices dropped again after a sixth-week loss. The price of West Texas Intermediate (WTI) for January delivery and Brent crude for January delivery lost 10.7 percent and 11.9 percent, respectively, during the week ending Nov. 23.
In the previous week ending Nov.16, WTI for December delivery and Brent crude for January delivery lost 6.2 percent and 4.9 percent, respectively. WTI and Brent settled at 56.46 U.S. dollars and 66.76 dollars per barrel, respectively, at the end of the week.
On Monday, oil prices rose slightly in volatile trading, as crude inventories reportedly fell and European Union (EU) supported France's decision to sanction Iran over security concerns. WTI for December delivery rose 30 cents to settle at 56.76 dollars a barrel, while Brent crude for January delivery picked up 3 cents to close at 66.79 dollars a barrel.
On Tuesday, oil prices plummeted, as U.S. President Donald Trump reaffirmed Saudi Arabia as "a great ally" and signaled it won't punish Saudi crown prince over journalist Jamal Khashoggi's killing. WTI for January delivery slumped 3.33 dollars to settle at 53.43 dollars a barrel, while Brent crude for January delivery plunged 4.26 dollars to close at 62.53 dollars a barrel.
Trump's remarks came two weeks ahead of a meeting between Saudi-led Organization of the Petroleum Exporting Countries (OPEC) and world's other oil producers to discuss about potential output cut and potential global oil policy in December, in a bid to grapple with the current supply glut worrying investors.
Trump, via Twitter, has voiced opposition against cutting oil production by Saudi Arabia and OPEC, saying, "oil prices should be much lower based on supply."
However, analysts cast doubt over whether Riyadh would back Trump in maintaining the current oil production level, at a time when fears over supply surplus has been weighing on oil prices continuously.
On Wednesday, oil prices rebounded after the previous day's sharp declines. WTI for January delivery increased 1.2 dollars to settle at 54.63 dollars a barrel, while Brent crude for January delivery added 0.95 dollar to 63.48 dollars a barrel.
U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, increased by 4.9 million barrels from the previous week, the U.S. Energy Information Administration (EIA) said in a report on Wednesday.
U.S. crude oil refinery inputs averaged 16.9 million barrels per day, which was 423,000 barrels per day more than the previous week's average.
U.S. crude oil imports averaged 7.6 million barrels per day, up by 102,000 barrels per day from the previous week. U.S. crude oil exports averaged 2.0 million barrels per day, down by 81,000 barrels per day from the previous week.
The EIA also estimated that U.S. crude oil production in the week ending Nov. 16 was 11.7 million barrels per day, which stayed the same as the previous week.
Moreover, the EIA said that U.S. average gasoline prices at this Thanksgiving holiday reached a three-year high.
Heading into the Thanksgiving holiday weekend, U.S. retail regular-grade gasoline averaged 2.61 dollars per gallon (1 gallon is about 3.8 litters), up 4 cents per gallon from the same time last year. This year also marked the highest gasoline price for the Monday before the Thanksgiving holiday weekend since 2014.
On Friday, oil prices tumbled, as the market has been overwhelmed by persistent fears over supply gluts. WTI for January delivery slumped 4.21 dollars to settle at 50.42 dollars a barrel, while Brent crude for January delivery plunged 3.8 dollars to close at 58.8 dollars a barrel.
Ongoing concerns about oversupply has further roiled investors sentiment, as Saudi Arabia said on Thursday that its oil output in November would surpass October's production of 10.6 million barrels per day.
The latest weekly EIA report also worsened the current situation, as U.S. crude stockpiles gained a fresh round of increase, extending its gaining streak to a ninth straight week.
Meanwhile, in the week ending Nov. 23, the number of active drilling rigs in the United States decreased by three to 1,079, and the all lost are oil rigs.
The market keeps a close watch on the U.S. oil prices as concerns about oversupply send oil company stock lower and dragged down Dow Jones and S&P500.
Worried about the prospect of a new supply glut, OPEC is talking about trimming output after a meeting planned for Dec. 6.
Meanwhile, the market will focus on the news of any meeting between officials from China and the United States aiming at seeking solution to the trade tensions.
