Published: Fri, November 02, 2018
Business | By Tara Barton

Oil Slips On Signs of Rising Supplies, Economic Slowdown Jitters

Oil Slips On Signs of Rising Supplies, Economic Slowdown Jitters

A Reuters survey on Wednesday showed the Organisation of Petroleum Exporting Countries raised oil production last month to its highest since 2016, led with gains by the United Arab Emirates and Libya. Posting a sharper, 1.8-percent decrease Tuesday was the December Brent contract, which slipped $1.43 to end the day at $75.91.

By 11:12 a.m., WTI front-month traded only 1.5 percent lower at $66.05 per barrel, while Brent front-month traded 1.7 percent lower at $76.05.

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 US goods.

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

Both contracts have fallen roughly $10/Bbl from four-year highs reached during the first week of October.

-China trade war kept pressure on the market.

Concerns over the US-China trade dispute, prospects of lower demand for crude oil in the next months and renewed jitters regarding potential oversupply in the markets have been weighing on traders' sentiment as of late.

Danes claim Tehran attempted to assassinate Iranian opposition figure in Denmark
Back in September, Iran summoned the envoys from the UK, Netherlands and Denmark, after a terrorist attack on a military parade. Meanwhile, Danish Foreign Minister Anders Samuelsen called the suspected planned attacks in Denmark "perfectly unacceptable".

Oil is also under pressure from rising output by the world's biggest producers - Russia, the United States and Saudi Arabia - who are helping to replenish global oil inventories after more than a year of stock draws.

The US has already imposed tariffs on $250bn worth of Chinese goods, and China has responded with retaliatory duties on $110bn worth of US goods.

US oil markets have taken a step lower with the WTI slipping from the 67.00 level following US President Trump's presidential decree that global oil markets have enough supply to make up for any constraints from US sanctions on Iran, which come into effect on November 4th.

USA gasoline stockpiles fell by 3.2 million barrels last week, while distillate fuel inventories decreased by 4.1 million barrels last week, according to the EIA.

The U.S. government has agreed to let eight countries, including South Korea and Japan, as well as India, keep buying Iranian oil after it reimposes the sanctions, Bloomberg reported on Friday, citing a U.S. official.

Oil prices dipped on Friday as record crude output by the world's top-three producers offset supply concerns from the start of USA sanctions next week against Iran's petroleum exports. Saudi Arabia and Russian Federation have said they will pump enough to meet demand once U.S. sanctions are imposed.

USA crude stocks rose last week, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday.

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