Crude prices stabilize after sharp decline

Crude prices stabilized Friday after dropping significantly this week.

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

The crude production from the Organization 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 OPEC monthly report released Friday.

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 U.S., Brazil and Canada. Non-OPEC supply is expected to increase by 1.24 mb/d in 2015.

U.S. crude stockpiles added 5 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. U.S. domestic crude production rose to the highest level since March 1986, according to Energy Information Administration.

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.

Light, sweet crude for November delivery moved up 5 cents to settle at 85.82 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery gained 16 cents to close at 90.21 dollars a barrel.