SINGAPORE (Reuters) – Oil prices fell Wednesday and extended losses from previous meetings with markets that were well delivered by…
SINGAPORE (Reuters) – Oil prices fell Wednesday and extended losses from previous meetings with markets that were well delivered by rising production and US sanctions that allow Iran’s largest customers to continue to buy their raw materials.
PHILPHOTO – Iraqi villagers guide their fishing boat across Al-Baath oil tankers in Shat al-Arab waters, leading to the port of Umm Qasr, near the country’s second largest city of Basra on February 1
0, 2005. REUTERS / Atef Hassan
Last The month Brent Crude Oil Futures LCOc1 was at $ 71.85 per barrel at 0115 GMT, down 28 cents, or 0.4 percent, from their last closing.
US. The West Texas Intermediate (WTI) crude futures CLc1 was $ 61.76 per barrel, 45 cents or 0.7 percent, from their last settlement.
The increasingly well-equipped market has become sentimental, which until the beginning of October was largely bullish, brending Brent to four years high at more than 86 dollars a barrel before the Iran sanctions.
Brent and WTI have lost 17.4 and 19.7 percent in value from their last peak in early October.
US. The bank JP Morgan said that “some of the latest oil sales were due to excessive raw materials in the physical markets … from increased OPEC production while Iranian delivery was still on the market despite reduced reported exports”.
Fawad Razaqzada, market analyst at Forex.com futures broker, said he had become “rather keen on oil prices” due to lower demand growth forecasts, higher supply and irregularities.
According to Refinitive Eikon data, Iranian raw exports have decreased to 1 million barrels per day (BPD) so far in November, from nearly 2 million bpd in October and about 3MBD in mid 2018.
GRAPHIC: Iran oil exports – tmsnrtrsrs / 2PabBPs
US The bank Morgan Stanley said that “oil market grounds have softened (as) supply continues to come higher than expected, especially from the US, the Middle East OPEC, Russia and Libya.”
Production from the world’s top 3 manufacturers Russia, the United States and Saudi Arabia broke through 33 million bpd for the first time in October, which means that these three countries alone now face more than one third of the almost 100 million bpd of global consumption .
Iraq, the second largest producer in the organization of oil-producing countries (OPEC), behind Saudi Arabia, targets production capacity of 5 million bpd in 2019, up from 4.6 million bpd at present, said oil minister Thamer Ghadhban on Tuesday.
“The market is delivering well, and we see a balanced rather than narrow market ahead. This no longer supports our $ 85 per barrel year-end and 1H19 forecast,” said Morgan Stanley.
Instead, the bank said that it expected Brent to average around $ 77.5 per barrel until mid 2019.
As production rises, inventories swell.
US. raw stocks increased by 7.8 million barrels a week ending November 2 to 432 million, data from the American Petroleum Institute showed on Tuesday.
Despite the well-supplied market, Razaqzada warned that it would be “more costly for inefficient producers to maintain production at current levels”.
Venezuela’s oil production was in “free fall” and could soon fall below 1 million bpd, the international energy agency’s executive director Fatih Birol warned Tuesday, from the more than 2 million bpd it has estimated last year.
GRAPHIC: Russian, US and Saudi Crude Oil Production – tmsnrtrs / 2CTwqaq
Reporting by Henning Gloystein; Editing Joseph Radford
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