Crude oil prices stabilise after sharp decline

Crude oil prices stabilised Friday after dropping significantly this week.

The crude oil market suffered another big weekly loss amid concerns over surplus supplies. This week, the prices of US crude and Brent crude dropped 4.4 percent and 2.3 percent respectively.

Crude production from the Organisation of Petroleum Exporting Countries (OPEC) averaged 30.47 million barrels per day (mb/d), an increase of 402,000 barrels from the previous month, according to the OPEC monthly report released Friday, Xinhua reported.

Non-OPEC oil supply growth in 2014 is forecast at 1.68 mb/d, in line with the previous report. Growth was seen coming mainly from the US, Brazil and Canada. Non-OPEC supply is expected to increase by 1.24 mb/d in 2015.

US crude stockpiles added five million barrels to 361.7 million barrels last week, according to data from the Energy Information Administration (EIA) released Wednesday.

Technology and high prices are opening up new oil resources from North America. US domestic crude production rose to the highest level since March 1986, according to the EIA.

Traders worried that the slowing demand could not catch up with the rising global supplies.

OPEC expected global oil demand growth in 2014 to reach around 1.05 mb/d, unchanged from the previous report. In 2015, world oil demand is forecast to rise by 1.19 mb/d, in line with last month's forecast.

US crude for November delivery moved up five cents to settle at $85.82 a barrel on the New York Mercantile Exchange, while Brent crude for November delivery gained 16 cents to close at $90.21 a barrel.