Oil prices fall 2 percent on rising supply and trade war

Oil price falls to $75 from high of $86

Oil price falls to $75 from high of $86

Washington has said it aims eventually to stop all Iranian oil exports but has granted several countries waivers on sanctions, allowing them to continue imports for a while. These numbers are in line with seasonal trends; oil inventories typically rise as refineries re-tool for winter product blends. Both stock markets and crude futures jumped in early October before selling off sharply.

With Russia pumping oil at a post-Soviet high, US crude output at more than 11 million barrels per day (bpd.), concerns about renewed USA sanctions on Iran have faded in recent days.

In addition, global oil supply is also rising as Russia, Saudi Arabia and the USA pumped 33 million barrels per day in September.

In a bearish signal, the American Petroleum Institute reported USA crude inventories rose 5.7 million barrels last week, more than analyst's forecasts for a 4.1 million barrel build.

The draw in gasoline and distillate inventories this week is unlikely to take the sting out of such high crude oil and Cushing inventories, and by 4:40pm EDT, WTI was trading down at $66.19 and Brent was trading down at $76.04. This made the USA the biggest oil producer in the world.

In addition to Japan, India, and South Korea, the United States would grant the oil waiver to China as well, two people familiar with Washington-Beijing discussions said on the condition of anonymity.

Palestinian group agrees to stop firing rockets at Israel - Ireland
Secretary-General Antonio Guterres "deplores" the deaths of the three Palestinian children, a spokesman said. Israel and Palestinian militants in Gaza have fought three wars since 2008.

Petoro AS, the company that manages the Norwegian government's massive stake in the country's oil and gas fields, warned that the industry's costs could be rising for the first time since crude's collapse in 2014.

The WTI and Brent crude oil benchmarks ended the day lower Tuesday.

Oil extended its slide to six-month lows as the USA dialed down its crackdown on Iranian exports and American supplies surged, easing concerns of an impending shortage. -China trade war kept pressure on the market.

USA crude oil production has increased significantly during the past 10 years, driven mainly by production from tight oil formations using horizontal drilling and hydraulic fracturing. USA light crude CLc1 was 60 cents lower at $66.44.

Hedge funds are still overwhelmingly long on oil and may have to liquidate positions if prices keep falling, accelerating a market sell-off, analysts say. WTI picked up 0.26 dollar to settle at 67.59 dollars a barrel.

The other four countries to get waivers remained to be identified, but Turkey was predicted to be one of them. His impressive career goes back nearly three decades, gaining attention with his market calls as writer of "The Energy Report". I think that the narrative over the last two months has changed.

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