Oil prices fall on signs of rising supplies

Oil prices fall on signs of rising supplies

Oil prices fall on signs of rising supplies

Prices were little changed in post-settlement trade after industry group the American Petroleum Institute reported United States crude inventories rose 5.7 million barrels last week, more than analysts' forecast for a 4.1 million-barrel build.

Cohen says Barclays expects a flat performance from oil in 2019 in spite of the geopolitical environment because US shale production is likely to ramp up, replacing some American demand in the global market with increased supply.

"The market is discounting this expectation right now", Thorpe said.

"In spite of the increase of crude oil inventories, crude futures prices are being supported by the inventory decline in refined products", said Andrew Lipow, president of Lipow Oil Associates in Houston.

According to API data, the six-week running tally of crude oil inventory gains equals 27 million barrels.

Crude oil and other commodities are historically an asset class for investors to "get away" from the stock market, Kilduff told CNBC in an interview this week.

Oil production from Russian Federation, the United States and Saudi Arabia reached 33 million barrels per day (bpd) for the first time in September, Refinitiv Eikon data showed.

Beyond Iran sanctions, oil output has been rising significantly in the past two months.

On November 4, 2018, US sanctions on Iran will begin and Washington has made it clear it expects for Iranian oil customers to stop buying.

Iran on Friday said that the waivers granted by the USA showed the Iranian crude was needed and could not be withdrawn from the market. Saudi Arabia was pumping at then-record levels, and USA drillers were adding rigs to American oil fields.

In addition to Japan, India, and South Korea, the USA would grant the oil waiver to China as well, two people familiar with Washington-Beijing discussions said on the condition of anonymity. This means that the country imports more than 10 million barrels every day. Now after this one-week spectacular increase in production, one must wonder whether the EIA is playing catch up with the last few reports that showed no increase or whether the jump in production is a sign of more production increases to come.

Crude had edged higher earlier on Friday after Bloomberg reported that U.S. President Donald Trump wants to reach an agreement on trade with Chinese counterpart Xi Jinping at the Group of 20 summit in Argentina later this month, and has asked key U.S. officials to begin drafting potential terms.

But oil supply from other countries is rising.

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