US Crude Stocks Rise by 3.2 mln bbls Last Week
- Author: Eleanor Harrison Nov 03, 2018,
Nov 03, 2018, 8:31
The West Texas Intermediate for December delivery dropped 0.55 USA dollar to settle at 63.14 dollars a barrel on the New York Mercantile Exchange, and the Brent crude for December delivery lost 0.08 dollar to 72.83 dollars a barrel on the London ICE Futures Exchange.
Brent for January settlement advanced 32 cents, or 0.4 percent, to $73.21 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate (WTI) crude futures declined 29 cents to $65.02 a barrel.
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.
He also said Russian Federation could even assume the leadership position because it is a "heavyweight both in terms of production and in terms of political influence".
At 1:58 pm EDT, WTI was trading down 0.88% (-$0.59) at $66.45-nearly flat week on week.
Distillate stockpiles, which include diesel and heating oil, fell by 4.1 million barrels, versus expectations for a 1.4 million barrels drop, the EIA data showed. But the spread would narrow to 4 dollars per barrel by December 2019.
Crude oil futures were linked primarily to the sell-off in global equity markets in October, sinking as investors sold risk assets.
Benchmark Brent crude oil LCOc1 fell by $2.25 a barrel to a low of $75.09 before recovering slightly to around $75.50, down $1.84, by 1345 GMT. In 2017, the country consumed more than 19 million barrels of crude oil every day.
"In theory, we could have been in a bullish market because of sanctions against Iran".
Could oil prices reverse this drop?
Influencing Tuesday's crude price movements were ongoing fears that the trade dispute between the United States and China will get worse, Bloomberg reported earlier.
China's imports of Iranian crude tumbled 41.6 percent in September from a year earlier to 458,000 bpd, according to oil flow data on Refinitiv Eikon. Investors are weighing market sentiment ahead of new USA sanctions on Iran that begin on November 4.
For a sense of perspective, July 2016 was two months before a meeting that paved the way for an historic deal between OPEC, Russia and other producers to cut output.
The report also warned that a slowdown in China painted "a subdued picture of economic growth and offers little support to the prices of industrial and energy commodities".