Oil Extends Losses As Other Markets Fall, Inventories Rise

OPEC cuts forecast for global oil demand growth in 2019

Both benchmarks were headed for their first weekly drop in five weeks, pressured by a big rise in USA inventories and fading concerns about shrinking global supplies due to looming US sanctions on Iran's oil exports.

U.S. West Texas Intermediate (WTI) crude futures were up 80 cents, or 1.1 percent, at $71.77 a barrel, after a 3 percent fall in the previous session.

Speaking of crude oil, recently, crude oil futures were increased in Asia as the US indicated awareness to increase the pressure on the Maduro regime in Venezuela. Brent crude last week reached $86.74, the highest since 2014. The Organization of the Petroleum Exporting Countries (OPEC) made a similar move on Thursday.

"On the other hand, Iran sanctions are only weeks away".

Saudi Arabia, the world's biggest oil exporter, will supply Indian buyers with an additional 4 million barrels of crude oil in November, several sources familiar with the matter said.

Oil prices gave back early gains and turned lower on Friday after the International Energy Agency (IEA) deemed supply adequate and the outlook for demand weakening, sinking even as equities rebounded from a slump Thursday. US light crude CLc1 was down 15 cents at $74.81.

BSEE reported an estimated 39.5% of current oil production, about 670,831 barrels per day, and 28.4% of natural gas production, 726 million cubic feet per day, in the Gulf of Mexico had been shut-in as of mid-day Tuesday. They earlier touched their lowest since September 27 at $81.35, after closing 2.2 per cent lower on Wednesday.

Iran's crude exports fell further in the first week of October, according to tanker data and an industry source, as buyers sought alternatives ahead of US sanctions that take effect on November 4.

India is Iran's second-largest single oil customer after China and was expected to cut back on Iranian oil purchases, but is unlikely to cut off completely the cheap Iranian oil that is suitable for its refineries.

"Iranian barrels are declining fast, and Saudi Arabia's promise to balance will face a reality check in a month's time", JP Morgan analysts said in a note.

The hefty discounts on Canadian crudes reflect transportation bottlenecks out of Western Canada, along with softer demand as a number of USA refiners are offline for maintenance, said Michael Tran, Commodity Strategist with RBC Capital Markets.

Worries about crude supply from the Middle East have given prices some support.

The oil price rose in the past months due to the United States sanctions on Iran.

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