Oil prices declined in today's volatile trading. Yesterday the International Energy Agency stated that prices are likely to fall as stockpiles will increase. Stockpiles help by OPEC-members will reach an all-time high in the middle of 2015. Brent Crude lost -1.31%, currently trading at USD55.69 a barrel. On January 13th Crude hit a low at USD45.19 and began to rise on reports on declining rig numbers in the U.S. and capital expenditure cuts. Crude registered the biggest 2-week gain in 17 years last week. West Texas Intermediate declined by -0.62% currently quoted at USD49.71, below the level of USD50 again. Saudi Arabia, Iraq, Kuwait and Iran - OPEC's four biggest producers in the 12 member club - further cut prices to Asia in a fight for market share. Last week Saudi Arabia cut its prices to the lowest level in 14 years.
Markets wait data on U.S. Crude Oil Inventories due later in the day at 15:30 GMT to assess the strength of demand from the world's largest consumer.
Worldwide supply still exceeds demand in a period of low global economic growth and the OPEC refusing to cut output rates to stabilize prices. Smaller OPEC members want to cut production but the organisation, responsible for 40% of worldwide production focuses on its fight for market share. Rising U.S. stockpiles are contributing to a global glut that drove prices almost 50 percent lower last year. The U.S., Brazil, Russia and the OPEC are producing at record levels.