Oil Prices Drop Again After Brief Revival on OPEC Demand Forecast for 2015

© Flickr / alex.ch OPEC headquarters in Vienna
OPEC headquarters in Vienna - Sputnik International
February futures for West Texas Intermediate (WTI) and Brent crude oil dropped to less than $49 per barrel after a brief revival to $50, caused by the revised forecast for 2015 global oil demand, published by Organization of the Petroleum Exporting Countries (OPEC) on Thursday.

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MOSCOW, January 15 (Sputnik) As of 15:48 GMT, February futures for Brent crude oil decreased by 1.02 percent reaching $48.2 per barrel. February futures for WTI dropped by 2.06 percent to $47.5. Earlier on Thursday Brent reached $50.62 per barrel, surpassing $50 for the first time in a week, while WTI reached $51.07 per barrel.

"World oil demand growth for 2014 was revised up by 20 tb/d to average 0.95 mb/d, bringing total oil demand to 91.15mb/d…. For 2015, growth is expected to be around 1.15 mb/d, higher by 30 tb/d from the previous month"s report, reaching 92.30 mb/d," OPEC said in a report released on its official website. OPEC said the upward revision was caused by the better-then-expected demand data in the OECD, Americas and Other Asia regions.

Men work on an oil pump during a sandstorm that blew in Thursday, Jan. 8, 2015, in the desert oil fields of Sakhir, Bahrain - Sputnik International
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Global oil prices started going down in June, 2014 amid market oversupply. In November 2014, OPEC decided to not change oil output levels contributing to a further price decrease. In total, Brent crude oil more than halved its price, which went down from $115 per barrel in June to $46 this week. According to the most recent forecasts by US Goldman Sachs, over the next six months the price of Brent oil could fall to $43 per barrel with WTI crude oil reaching $39 per barrel.

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