Breaking News
0

Oil prices down 20 percent in a month as fundamentals weaken

CommoditiesNov 08, 2018 20:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Oil prices down 20 percent in a month as fundamentals weaken

* Oil prices hit 4-year highs in early October

* Crude has since slumped as supply rises, demand slows

* Iran sanctions impact dampened by broad exemptions

* U.S., Russia, Saudi crude output: https://tmsnrt.rs/2Rua0R8

By Henning Gloystein

SINGAPORE, Nov 9 (Reuters) - Oil markets on Friday remained weak as rising supply and concerns of an economic slowdown pressured prices, with U.S. crude now down by 20 percent since early October.

U.S. West Texas Intermediate (WTI) crude oil futures were at $61.63 per barrel at 0125 GMT, down 4 cents from their last settlement.

Front-month Brent crude oil futures LCOc1 were at $70.79 a barrel, 14 cents above their last close

However, both Brent and WTI have declined by around 20 percent from four-year highs in early October.

"Oil prices continue to decline and are now officially in a bear market, having declined 20 percent from their (October) peak," said William O'Loughlin, investment analyst at Australia's Rivkin Securities.

Reuters technical commodity analyst Wang Tao said on Friday that "Brent oil may slide further into a range of $68.59-$69.69 per barrel."

That would be the first time Brent has fallen below $70 since April.

Analysts said the main downward price pressure came from rising supply, despite the U.S. sanctions against Iran that were imposed this week, as well as concerns over an economic slowdown.

"As OPEC exports continue to rise, inventories continue to build which is putting downward pressure on oil prices," analysts at Bernstein Energy said.

"A slowdown in the global economy remains the key downside risk to oil," Bernstein added.

The decline in prices over the past weeks follows a rally between August and October when crude was pushed up ahead of the re-introduction of sanctions against Iran's oil exports on November 5.

These sanctions, however, will unlikely cut as much oil out of the market as initially expected as Washington has granted exemptions to Iran's biggest buyers which will allow them to continue buying limited amounts of crude for at least another six months. on Iran are so far proving to be less severe than first thought ... because the U.S. has now issued waivers to a raft of countries," O'Loughlin said.

Bernstein Energy expects "Iranian exports will average 1.4-1.5 million barrels per day (bpd)" during the exemption period," down from a peak of almost 3 million bpd in mid-2018.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ FACTBOX-The knowns and unknowns of U.S. Iran oil sanction waivers

GRAPHIC: Russian, U.S. & Saudi crude oil production

https://tmsnrt.rs/2CTwqaq

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Oil prices down 20 percent in a month as fundamentals weaken
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email