Crude oil futures settled sharply lower with cut of over three percent on Friday on rising concerns about the outlook for energy demand following a surge in coronavirus cases and the imposition of fresh restrictions in some European countries. The US Energy Information Administration in its latest monthly Short-Term Energy Outlook (STEO) report said that crude oil prices are set to decline next year from the current levels as global inventories will start to build again with supply rising more than demand. However, the EIA's estimate for oil production in the United States for the week ending November 12 slipped 100,000 bpd to 11.4 million bpd. Oil production is still well below the 13.1 million bpd record set last year before the pandemic took hold in the United States.
Benchmark crude oil futures for December delivery fell $2.47 or 3.2 percent to settle at $75.94 a barrel on the New York Mercantile Exchange. Brent crude for January delivery dropped $2.49 or 3.07 percent to settle at $78.75 a barrel on London's Intercontinental Exchange.