Brent and WTI have both come down by around 20 percent after seeing four-year highs earlier in the month of October.
Analysts say that Brent could further decline to a range of $68.59-$69.69 per barrel.
Oil markets remained weak with concerns of an economic slowdown and rising supply on Friday. U.S. West Texas Intermediate (WTI) crude oil was expected to be at $65.60 per barrel at 0509 GMT, but it went down 4 cents, or 0.1 percent from their last settlement. WTI is feared to fall further down to 4.1 percent more than the last week.
At the beginning of this month, Brent crude oil was expected to rise at $70.69 a barrel, 4 cents above their last close. But the oil company is set for a 2.9 percent drop for the week, making this week its fifth straight week of declines.
William O’Loughlin, investment analyst at Australia’s Rivkin Securities observed that oil prices continue to decline and have fallen into the bear market.
Technical commodity analyst Wang Tao said that Brent oil may decline into a range of $68.59-$69.69 per barrel. Marking the first time Brent has fallen below $70 since April.
Analysts at Bernstein Energy explained the reason for this that OPEC exports continue to rise causing inventories to continue to build which is putting downward pressure on oil prices.
The decline in these prices over the past few weeks follows after a rally between August and October when crude oil had risen ahead of the re-introduction of sanctions against Iran’s oil exports this month.
The sanctions, however, are considered unlikely to cut as much oil out of the market as initially expected. Since Washington has granted exemptions to Iran’s biggest buyers allowing them to continue buying limited amounts of crude for at least six months ahead.