Crude oil prices in the Asian trade have reached partial stabilization after taking a descending trend since the beginning of 2014.
Brent crude oil for delivery in February gained two cents to USD 61.20 on Thursday afternoon. The price of Brent crude oil on Tuesday tumbled below USD 59 a barrel for the first time since May 2009.

The respite came despite the fact that US benchmark West Texas Intermediate for delivery in January plummeted 27 cents to USD 56.20.

The respite was mainly due to a dip in US oil stockpiles and after reports by the Federal Reserve that interest rates would not be increased until the middle of the next year.

Oil prices in Asia witnessed a rise on Wednesday after the US Energy Information Administration (EIA) said its reserves fell 800,000 barrels in the week ending December 12.

"Benchmark prices... received a minor reprieve after the EIA's report that crude oil inventory in the US has declined," said Sanjeev Gupta, the head of the Asia-Pacific oil and gas practice at business consultancy EY.

Daniel Ang, investment analyst at Singapore-based Phillip Futures, described the price stabilization in Asian trade as "unexpected", adding, "We believe that the market may be missing the point or simply favouring $60 Brent prices.”

Oil prices have been falling throughout 2014, getting nearly halved since June as a result of declining demand and increased supplies.

On Tuesday, the price of Brent crude oil tumbled below USD 59 a barrel for the first time since May 2009.

The five-year low was exacerbated following a refusal by some major oil producers, including Saudi Arabia, to cut their crude output.

By Press TV

 

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