Crude oil futures decline on overseas leads

Roman Schwartz
November 3, 2018

"We expect Brent to average $72/b next year ($65/b WTI), unchanged from last month, but see price risks skewed to the upside, especially in Q1 and Q4 2019", Michael Cohen, an analyst Barclays.

Barrel is the unit of measurement of oil volume.

"We're pleased with the increase in production from the second quarter of 2018 recognizing it reflects contributions from just one of our key growth areas, the Permian", CEO Darren Woods said. It ranks first in oil futures trade.

Adequate oil supply and an uncertain global economic outlook also dampened sentiment.

London Intercontinental Exchange (ICE) is a London-based options exchange and a leading operator of global exchanges founded in 1982. Earlier fears that American sanctions on Iran could result in a crude shortage are also receding, as the USA shale boom gains new momentum and the Trump administration vacillates on how aggressively to target Iranian exports.

"It's a very confusing time for the oil market, which is grappling with a very fundamental question about whether we have a supply problem or not and the answer has been unclear", said Tamar Essner, director of energy and utilities at Nasdaq Corporate Solutions.

"The strong build in oil inventories is likely to keep downward pressure on oil prices", ANZ Research analysts said in a note.

Oil has been caught in the global financial market slump this month, raising concerns about global oil demand.

Japan Airlines pilot arrested in United Kingdom for drinking before flight
The pilot later pleaded guilty before a court to being over the legal limit, and is expected to be sentenced on November 29. A driver of a crew bus alerted police after smelling alcohol on Jitsukawa's breath, Japanese broadcaster NHK reported .

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.

Japan last loaded crude oil from Iran in mid-September, according to Refinitiv data.

USA sanctions on Iranian crude oil exports would take effect on November 4, prompting more countries to cut imports from Iran.

The draw in gasoline and distillate inventories this week is unlikely to take the sting out of such high crude oil and Cushing inventories, and by 4:40pm EDT, WTI was trading down at $66.19 and Brent was trading down at $76.04.

Monthly crude oil production in several US states reached a record high.

Oil prices fell more than 2 percent on Tuesday on signs of rising supply and concerns that global economic activity and fuel demand would be hit by a deepening U.S.

All this is happening a few days before Iran is expected to cease oil exports. Continuing trade tensions between the USA and China are raising concerns slower economic growth will slow the demand for oil.

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