Crude price stabilizes after brief rebound

U.S. crude price stabilized Monday after the market rebounded briefly late last week.

Earlier last week, crude prices plunged to the lowest level since June 2012 and then climbed and pared losses Thursday and Friday as traders thought they were oversold. The forecast that crude supply would surpass demand globally was blamed for a sharp decline in crude prices.

International Energy Agency (IEA) on Tuesday lowered its projections for global oil demand in the remaining time of this year and the next. It also cut its global oil demand forecast over the next two months by 200,000 barrels per day than its previous projection. According to the agency, oil demand is projected to increase in 2015 from this year, but at a slower pace than what was expected earlier.

The decline prompted market speculation that the Organization of Petroleum Exporting Countries (OPEC), supplier of about 40 percent of the world's oil, may decide to slash production to eliminate surplus supply and call for an earlier-than-scheduled emergency meeting.

IEA, however, said Tuesday that Saudi Arabia, the world's biggest oil exporter, has "appeared determined to defend its market share" in Asia, even at the expense of lower prices. Kuwait 's oil minister said on Oct. 12 that there may be "no room" to restore prices by trimming supply.

Iran's oil ministry also said at its official website Monday that the country's leaders feel "no emergency meeting is necessary for OPEC members to discuss the price slide," a sign that OPEC won 't take any action to bolster prices before a meeting scheduled for Nov. 27 in Vienna, Austria, which put more pressure on oil prices.

Light, sweet crude for November delivery moved down four cents to settle at 82.71 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery fell 76 cents to close at 85.40 dollars a barrel.