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 Global oil benchmarks hit their lowest since 2009 this week and
are down more than 50 percent from June levels, with Brent crude
futures <LCOc1> extending declines on Friday, dropping 40 cents a
barrel to $50.56 by 0514 ET.
U.S. crude futures for February delivery <CLc1> were down 18 cents
at $48.61 a barrel despite robust U.S. economic data that brightened
the outlook for demand.
Brent's premium to U.S. crude <CL-LCO1=R> fell near $1.92 a barrel,
the narrowest since October as international seaborne oil markets
appear to be under even more pressure than the U.S. domestic market.
"It is another negative week and a reflection of the focus on
negative arguments," said Hans Van Cleef, senior energy economist at
Dutch bank ABN Amro.
Supply concerns remained as Saudi Arabia and its Gulf OPEC allies
are showing no sign of considering cutting output to boost oil
prices even as demand slows globally.
Annual consumer inflation in China remained near the lowest in five
years, signaling persistent weakness in the world's largest energy
consumer.
Signs of further slowdown in Europe's largest economy Germany fueled
further concerns over oil demand.
"Without any changes to fundamentals, selling appears largely to be
jittery investors looking for supply-demand equilibrium," ANZ
analysts said in a note.
For the first time since 2009, a contract to buy crude oil or any
sort of refined product costs less if it is for immediate delivery
than for future shipment, giving traders more reason to buy now
instead of later.
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If recent market history is any guide, Brent prices could mark time
around $50 a barrel for another few days before resuming their
decline.
Supply is piling up with some of the world's largest oil traders
hiring supertankers this week to store crude at sea.
BNP Paribas has cut 2015 price forecasts for Brent and West Texas
Intermediate crude by more than $10 per barrel to $60 a barrel and
$55 a barrel respectively.
"Supply issues will dominate demand in terms of fundamental factors,
with the market focusing on how the current supply surplus will
ultimately resolve itself," BNP said.
(Additional reporting by Florence Tan in Singapore; Editing by Dale
Hudson and William Hardy)
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