Crude oil futures fall 0.31 per cent on weak global cues

Crude oil prices were lower Thursday as the market waited for direction following a Thursday sell-off. File

By around 1415 BST, the price of Brent Crude oil was 0.30% lower at $72.67 per barrel.

Recall, October 30, December futures for Brent fell by 2.16% and was trading at $75,67 per barrel.

Both benchmarks posted their worst monthly drop since July 2016 in October, with WTI down nearly 11% and Brent falling almost 9%.

Prices were little changed in post-settlement trade after industry group the American Petroleum Institute reported United States crude inventories rose 5.7 million barrels last week, more than analysts' forecast for a 4.1 million-barrel build.

Liquids production rose six percent, as growth in North America more than offset decline and higher downtime. The report was largely in line with analyst expectations that this week would see another substantial build in crude oil inventories of 4.110 million barrels. WTI closed at $66.40 a barrel on Tuesday, while Brent crude settled at $76.23. Analysts now believe that surging output from the world's three largest producers outweighed supply concerns from the start of USA sanctions against Iran's petroleum exports which is expected to become active this weekend.

"There's this perception that there's enough oil in the market right now to get through the Iranian sanctions".

Iran's oil exports have shrunk by roughly 33% as crude importers reduce their purchases ahead of Washington's Sunday deadline.

Bears guarding $ 64 barrier, as rising global supplies continue to weigh. Yesterday, data from the EIA showed that United States crude production reached 11.3 million barrels in August.

Russian oil output has reached 11.41 million bpd, a level unseen since the collapse of the Soviet Union in 1991, an industry source told Reuters. However, expectation of a trade deal between the United States and China have eased global tensions and restricted the fall in global prices of the fuel.

Oil's autumn rally, which culminated in a four-year high last month, has unraveled as a rout in global equities fans concerns that fuel demand will suffer, and prices are now approaching a bear market.

China's manufacturing sector in October expanded at its weakest pace in more than two years, hurt by slowing domestic and external demand, in a sign of deepening cracks in the economy from the trade war with the US.

The United States has imposed tariffs on $250 billion worth of Chinese goods, and China has responded with retaliatory duties on $110 billion worth of USA goods.

This is published unedited from the PTI feed.



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