Crude futures are poised for their fifth straight week of losses as growing output from key producers and a deteriorating outlook for oil demand deepen a sell-off spurred by October's broader market sell-off.
Crude has tumbled 20 percent since touching a four-year high last month as apprehension over sanctions targeting Iranian oil exports evaporated, in part because of exemptions handed to some of the Islamic Republic's biggest customers.
"The market's not tight".
"It's with some satisfaction that I noticed today the price of oil is down".
"We appreciate that the U.S. recognized the role which this Port will play to bring strategic and long term benefits to Afghanistan as well as enhance Afghanistan's connectivity with the outside world", the MEA spokesman said. It fell as low $59.28 on Friday, its weakest level in almost nine months.
China's crude imports rose 32 percent in October compared with a year earlier to 9.61 million barrels per day (bpd), customs data showed.
Venezuela's crude production was in "free-fall" and could soon drop below 1 million bpd, the International Energy Agency's Executive Director Fatih Birol warned on Tuesday, down from the more than 2 million bpd it averaged past year.
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Brent crude, the European benchmark, is not quite there yet: it reached a peak of $86.29 on the same day and, earlier today, was trading at $69.99 at one point, representing a fall of just under 19%.
Even with US sanctions on Iranian oil in place, investors believe there is more than enough supply to meet demand. US crude production is accelerating, OPEC output is the highest in years and waivers will allow some Iranian crude exports despite USA sanctions. Mr. Hook explained that with global insurers gone, Iranian tankers are now relying on domestic insurances which according to the State Department will not be able to monetarily protect countries that allow Iranian vessels to post should a maritime accident such as an oil spill takes place. "Six months from now, the USA will be producing more crude oil than the unverified sustainable production capacity of Saudi Arabia". Iraq has also received a waiver for the import of electricity from Tehran. A Saudi think tank is studying what happens to oil markets in a world without OPEC.
About two dozen exporting nations began capping their output in 2017 in order to drain a global crude glut. In June, the producer group made a decision to relax output curbs in place since 2017, after pressure from U.S. President Donald Trump.
Russian Federation pumps an average of 10.8million bpd and Saudi Arabia, about 10.5million bpd.
A committee representing the alliance meets this weekend and could make a production recommendation to the wider group.
Earlier this year, U.S. had withdrawn from Iran nuclear deal stating that all sanctions imposed on Iran before the nuclear deal would be imposed again and November 4 was the deadline for them to be re-imposed.