Brent Below $80 On Falling Demand

Brent crude oil broke the $80 barrier and slipped into the 70's on Thursday. The commodity traded at $79.78 at 7:45 GMT after OPEC revealed that it was expecting to see demand fall further in 2015.

In a monthly report, OPEC said it sees demand falling to 29.20 million barrels per day in 2015, nearly one million bpd lower than its current production. The figure pushed the commodity’s prices lower as investors worried about slackening demand and a growing supply glut.

Related Link: Euro Steady After Draghi Says ECB Is Open To Unconventional Tools

With few catalysts for price increases left, investors have kept their attention on the upcoming OPEC meeting for any signs that the group is looking to cut down on output. On Wednesday, Reuters reported that Saudi Arabian Oil Minister Ali al-Naimi finally spoke up about the commodity’s future, saying that Saudi Arabia was most concerned with stable markets and not looking to engage in a price war.

Saudi Arabia was previously seen pushing for OPEC to accept the current oil prices in order to gain market share, but al-Naimi made no comments regarding Brent’s recent slide. Many analysts interpreted his reluctance to speak on the subject as a signal that the country may be reversing its stance in light of Brent’s latest fall.

Meanwhile, U.S. crude stocks fell more than expected last week according to a report from the American Petroleum institute. The data showed that crude stocks were down 1.5 million barrels in the week ending on November 7, far below analysts' expectations of an 800,000 barrel increase.