Factors beyond producers’ control are impacting oil market - OPEC

Lloyd Doyle
October 12, 2018

Oil prices fell to two-week lows on Thursday as it extended big losses from the previous session amid a rout in global stock markets, with prices also hit by an industry report showing USA crude inventories rose more than expected.

An oil tanker unloads crude oil at a crude oil terminal in Zhoushan, Zhejiang province, China July 4, 2018.

The Fund reduced the global economic growth from 3.9 to 3.7 percent.

Brent crude futures were down $1.32, or 1.6 percent, at $81.77 a barrel by 0543 GMT.

The American Petroleum Institute reported a 9.75 million barrel increase in US crude oil inventories. WTI hit a session low of $71.08, the lowest since September 21.

USA crude inventories USOILC=ECI rose 6 million barrels last week, the Energy Information Administration said, more than double analysts' expectations of a 2.6 million-barrels increase.

West Texas Intermediate (WTI) crude was down by 16 cents, or 0.2 percent, at $74.8 a barrel, after rising almost 1 percent in the previous session.


USA crude stockpiles rose more than expected last week, while gasoline inventories increased and distillate stocks drew, industry group the American Petroleum Institute said on Wednesday.

Falling U.S. equity markets and a global risk-off environment also weighed on crude futures.

OPEC Secretary-General Mohammad Barkindo said the oil cartel "remains ready to keep oil markets fully supplied". The rapid increase in prices was more about perception of a supply shortage than real fundamentals, he said.

The Organization of the Petroleum Exporting Countries cut its forecast of global demand growth for oil next year for a third straight month, citing headwinds facing the broader economy from trade disputes and volatile emerging markets.

This was after a 1.3 percent gain earlier in the day. Ultimately, I believe that the buyers will continue to return to this market every time we dip, as there are Iranian sanctions coming, and of course we are trading the November contract.

Michael crashed ashore Florida on Wednesday as the third most powerful hurricane ever to strike the USA mainland.

Other reports by Iphone Fresh

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