SINGAPORE — Oil prices edged up in Asia Friday after falling sharply in the previous session, as analysts predicted increased volatility and no end in sight this year to tumbling prices.
U.S. benchmark West Texas Intermediate (WTI) for January delivery rose 73 cents to US$54.84, while Brent crude for February gained 32 cents to US$59.59 in afternoon trade.
WTI dived Thursday US$2.36 to its lowest since May 2009, while Brent tumbled US$1.91. ��Until the issue of low global demand and oversupply is resolved, we will continue to see this type of market volatility as investors test the waters,�� Daniel Ang, investment analyst at Phillip Futures, told AFP.
��There are two camps in the market at the moment. Some who believe prices can fall further, and others who are betting that it should be above US$60,�� Ang added. Crude prices have plunged roughly 50 percent since June owing to plentiful supplies, a stronger dollar and weak demand as the global economy struggles, analysts say.
The Organization of the Petroleum Exporting Countries (OPEC), the oil producers group that supplies about 40 percent of the world’s crude oil, has so far declined to cut output to curb the price plunge.
Saudi Arabia, the leading OPEC producer, said on Thursday that competitive pressures prevent it from reducing output, and the kingdom can weather falling prices.