US. oil prices sparkle for a ninth straight meeting on Thursday, striking an eight-month low and entering a bear market…
US. oil prices sparkle for a ninth straight meeting on Thursday, striking an eight-month low and entering a bear market with concerns about rising global output and signs of worsening demand.
Light, pretty crude oil for December delivery ended 1.6% lower to $ 60.67 barrel on the New York Mercantile Exchange, which means that the contract at the end of the month will be around 21% in recent times. Brent crude, the global benchmark, fell 2% to $ 70.65 per barrel, about 18% below its peak. Bearing markets are generally defined as a 20% reduction from a market downturn.
darley shen / reuters
The US benchmark had risen to almost four years high at $ 76.41 a barrel just over a month since October 3. But since then, it has fallen sharply due to increased production, a softening of US oil strikes in Iran and trade tensions that raise concerns for slower global economic growth which, in turn, can reduce demand for oil.
The oil company was intensified in the last two days after a report from the Swedish Energy Agency showed that US oil inventories have risen for seven straight weeks to a quarter-month high of 432 million barrels. The report also showed that US oil production increased to 11.6 million barrels a day and is largely driven by production in slate areas such as West Texas and North Dakota.
“The raw buildings really did not help the prices,” said Mark Wagoner at Excel Futures. “But behind these numbers, and what many common people do not know – but oil drivers make it safe – the United States was only the world’s largest oil producer a few weeks ago, barely snapped off Russia. It’s huge.”
A decision in the Trump Administration to issue exemptions or deviations from oil sanctions against Iran as a result of oil prices pressed last week. The United States allows eight countries to continue buying Iranian crude oil. There was essentially a fear of a sanctioned delivery pressure, at least for the moment. “
” Even before a large number of Iran were notified of sanctions on Friday, the market view had soured on raw, “analysts say on Energy Aspects, in a research paper.” In view of economic uncertainty due to US and China long-term trade tensions, , or investors who bet on higher prices, “have given up.”
Hedge funds and other speculative investors have dunit bullish effects. Bullish bets on US raw outnumbered bearish bets 4-1 as of 30 October, much lower than 26- 1 The ratio in early July, according to Commodity Futures Trading Commission data.
The further decline in prices this week increases the importance of a meeting in Abu Dhabi among members of the organization of petroleum exporting countries, as many expect the group to Consider production cuts as a way to increase global oil prices.
“Given the The latest price decline and overexploitation that appears to be materialized next year, OPEC intends to reduce oil production “
analysts said in a note.
Russia, together with OPEC countries led by Saudi Arabia, has pumped more oil since the summer to compensate for the loss of Iranian barrels, which are now likely to be less than expected due to exemptions granted to certain buyers.
Falling raw prices also reflect weaker demand.
The International Monetary Fund lowered its targets for global economic growth by 2019, referring to the trade-off between the US and China as a factor in the forecast decline. About a week later, the International Energy Agency lowered its forecasts for oil demand forecasts for this year and next year. The IEA quoted higher oil prices as a factor in its decision.
Mixed refined products fell gasoline futures for December delivery 0.2% to $ 1.6443 per gallon. Diesel futures fell 3.1% to $ 2.18683 a gallon.
Corrections and Reinforcements
An earlier version of this story misplaced the name Excel Futures and said that diesel prices rose. Diesel fell on Thursday. (9 November)
Write to Dan Molinski at [email protected]