Oil dips amid well-supplied market, Iran sanction waivers

Oil dips amid well-supplied market, Iran sanction waivers

Oil dips amid well-supplied market, Iran sanction waivers

Production has not just risen in the U.S., but also in many other countries, including Russia, Saudi Arabia, Iraq and Brazil, stoking producer concerns of a return of oversupply that depressed oil prices between 2014 and 2017.

West Texas Intermediate for December delivery traded 6 cents lower at $60.61 a barrel on the New York Mercantile Exchange at 3:20 p.m.in Singapore.

Oil prices dropped below $70 a barrel for the first time since April, having reached as high as $86 last month, on the back of trade fears and waning growth.

The slump in oil markets has been exacerbated by a USA decision to allow eight countries to continue importing from Iran even after the United States hits the Opec member with sanctions. But with harshest of sanctions imposed on Iran by the United States Iran has little choice to but to use ghost ships for oil exports.

Asked if the administration had a target in reducing Iranian oil exports in the next six months, Hook said, "I can't tell you what our target is; we do have a target".

Crude output hit 11.6 million bpd, a weekly record, though weekly figures can be volatile.

Iran's oil minister on Thursday predicted a painful time ahead for global oil customers as US sanctions take hold, saying waivers that Washington granted to eight major oil-importing countries are not enough for market demands.

However, the rally proved short-lived after the US Energy Energy Information Administration (EIA) reported a build in crude inventories of 5.8 million barrels for the week to 12 November. It's the second in a series, after an earlier report found that the group's spare capacity reduces oil price volatility and generates as much as $200 billion of annual economic benefits for the world economy.

A barrel of USA light crude oil, which hit a near four-year high of $76.41 on 3 October, was today trading as low as $60.06, representing a drop of 21%.

With output overall rising, supply is ample despite the Iran sanctions now in place, prompting rumblings within the Middle East dominated Organisation of the Petroleum Exporting Countries (OPEC) that renewed supply cuts may be needed next year to prevent a glut.

The United States is now the world's biggest crude oil producer, pushing Russian Federation and Saudi Arabia to the back seat.

INDIA India is the world's third-biggest oil importer.

Also Thursday, Iran's representative to OPEC, Hossein Kazempour Ardebili, claimed that Russian Federation and Saudi Arabia were helping Trump by increasing their own production to keep oil prices low. Pressure from the U.S.to lower prices probably will decrease now that the nation's midterm elections are over, Saxo Bank's Hansen said.

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