Brent oil prices dips on rising supply, global market woes

FileOPEC-Non-OPEC States Ready to Boost Oil Output- Saudi Minister

FileOPEC-Non-OPEC States Ready to Boost Oil Output- Saudi Minister

Moreover, Saudi Arabia's Energy Minister Khalid al-Falih said on Tuesday that the Organization of the Petroleum Exporting Countries (OPEC) and its partners are in "produce as much as you can" mode.

Some 280,000 barrels of crude oil were traded on Sunday, the first day of offering crude oil for export on Iran Energy Exchange (IRENEX), just few days before new round of US sanctions on petroleum sector take effect, Shana reported.

He pointed to "weakening global economic growth, the ongoing US-China trade war, monetary policy tightening, fears of a hard Brexit (and) Italy's budget woes" as main reasons for the sell-offs.

Brent for December, in its last session before expiry, fell 44 cents to settle at $75.47 a barrel on the London-based ICE Futures Europe exchange.

Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018.

"The hedge funds really abandoned the long side of the market and there's some short-selling going on this perception that perhaps the economy is slowing", said Phil Flynn, analyst at Price Futures Group in Chicago.

However, the effects of the US withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in May, the resumption of Iran sanctions and the potential response from other countries pose significant uncertainty to the forecast.

The U.S. sanctions on Iran have been putting Iraq in a tight spot-on the one hand, Baghdad's trade is closely linked with its neighbor Iran, but on the other hand, the United States is an ally that helps with security. One is led by National Security Adviser John Bolton, who wants the toughest possible approach, and another by State Department officials keen to balance sanctions against preventing an oil price spike that could damage the USA and its allies.

Islamic Jihad group announces Gaza ceasefire with Israel
Sirens were heard in Israeli settlements near the Gaza-Israel buffer zone because of the rockets fired from Gaza. According to the Palestinian Health Ministry, 213 Gazans have been killed by Israeli forces during the riots.

In North America, however, there is no oil shortage as USA crude oil production C-OUT-T-EIA has increased by nearly a third since mid-2016 to around 11 million barrels per day.

From all indications, they appear not slowing down as oil prices take a dip on Tuesday.

In the coming weeks, traders keep a close eye on USA sanctions on Iranian crude exports.

The plan of supplying crude oil in stock market has frequently been raised in the past years but it doomed to failure.

In November, Iraq will halt trucking of oil to Iran to comply with the US sanctions, five sources with knowledge of Iraqi oil export plans told Reuters last week.

The United States has 875 operating oil drilling rigs in this week, adding two more from the previous week, according to data issued by oil service company Baker Hughes on Friday. USA crude was on course to fall about 8.5 percent.

Oil was also being weighed down by signs of rising supply from top producers.

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