SINGAPORE (Reuters) – Oil prices renewed their fall on Friday, pressured by concerns that producers are releasing more oil than…
SINGAPORE (Reuters) – Oil prices renewed their fall on Friday, pressured by concerns that producers are releasing more oil than the world needs, thanks to a gloomy economic point of view.
PHILPHOTO: A pump lease of a lease owned by Persilja Energie operates at the Permian Basin sunset near Midland, Texas, USA on August 23, 201
8. REUTERS / Nick Oxford / File Photo
The markets were offered some support from a Expectation that the producer organization For oil-producing countries (OPEC) will start supply supply 2019 to empty any glut.
US. The West Texas Intermediate (WTI) Crude Futures CLc1 fell by approximately 2.5 percent from its last closing, down $ 1.34 to $ 53.29 per barrel at 0333 GMT.
International benchmark Brent Crude Oil Futures LCOc1 was $ 61.82 per barrel, down 78 cents, or 1.3 percent among thin trading due to a vacation in Japan.
The divergence between US and international crude oil comes as a growing North American supply is clogged the system and depressive prices there, while global markets are slightly faster – partly due to reduced exports from Iran due to recent US sanctions.
Overall, global oil supply has increased this year, with the three largest manufacturers in the US, Russia and Saudi Arabia pumping more than one third of global consumption as stands around 100 million barrels per day (bpd).
(Graphic: Russian, US and Saudi Crude Oil Production – T.M.rs/2CTwqaq)
High output comes as demand prospects in the face of global economic slowdown.
Oil prices have fallen by about 30 percent since the last peaks in early October, when global production began to exceed consumption in the fourth quarter of this year, ending an underperformance period beginning in the first quarter of 2017, according to data in Refinitive Eikon.
Adjusting for lower demand, superior raw exporter Saudi Arabia said it could reduce supply.
“We will not sell oil that customers do not need,” said Saudi energy minister Khalid al-Falih.
Saudi Arabia drives OPEC to reduce oil supply by as much as 1.4 million bpd to prevent delivery gluten.
The group officially meets on December 6th to discuss its supply policy.
US. Bank Morgan Stanley said it saw “a much higher probability of OPEC reaching an agreement to balance the market 2019”, not adding that this would probably support oil prices “in the high 50s, at least near the term”.  (Graphic: Global Crude Oil Production and Demand Balance – TMSnrtrsrs / 2PKtzIy)
Reporting by Henning Gloystein; Editing Sherry Jacob-Phillips and Richard Pullin
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