Crude oil futures extend decline as oversupply concerns remain high

10 November, 2018, 11:55 | Author: Billie Castillo
  • Secretary Jeremy Hunt

The Brent crude futures contract for January now points to prices being lower than in February, implying some producers now believe that, with the market oversupplied, it is more worth their while to store oil, rather than sell it.

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

"The presence of Iranian barrels in the physical markets will be superfluous".

One is that, although United States sanctions against Iranian oil exports finally kicked in earlier this week, the impact of those sanctions has been mitigated by the Trump administration's decision to grant "waivers" to eight countries - China, India, Turkey, South Korea, Japan, Italy, Greece and Taiwan - allowing them to continue importing at least some Iranian oil for the next six months. It makes the United States the world's biggest producer of crude. "I see them diversifying towards other markets, for instance, the Saudi one, now under pressure to increase its oil output".

That will have profound implications not just for oil prices but, ultimately, geopolitics. "That's because of me".

China's October crude imports surged 32 per cent from a year earlier to 40.80 million tonnes, or 9.61 million barrels per day (bpd), data from the General Administration of Customs showed on Thursday, climbing from 9.05 million bpd in September.

Brent crude lost 2 percent to $70.65 a barrel in London.

S&P 500 posted its worst monthly drop in seven years.

Manchester United star a sudden doubt for Manchester derby after missing training
The top teams, you can not imagine and think about it, play amazingly for 90 minutes and they don't have chances". David Silva is usually the man but this time I think it's time for Raheem Sterling to step up in a huge game.

"We have seen the U.S. notification, including India in the list of countries, granted significant reduction exemption for the continued purchase of Iranian crude oil without attracting United States sanctions, " External Affairs Ministry spokesperson Raveesh Kumar said at a media briefing. When they meet this weekend, the producers will have to contend not only with the threat of a glut, but also the risk to demand from faltering emerging-market economies and a trade war between the USA and China. That's another reason the producers agreed to increase output earlier this year, partly reversing a policy of limiting supply.

Still, analysts think the scenario will change now that the mid terms are over: Joe McMonigle, analyst at Hedgeye, stated in a note, "OPEC was feeling the Trump pressure but producers took action with the thinking that they just needed to get past the USA election". Iran has said that Trump should learn from his predecessors who policies to target Iran could not work.

Oil markets initially rebounded on Wednesday from their lowest level since August after reports emerged of plans by leading producers Russian Federation and Saudi Arabia to curtail production next year to reverse a recent price plunge.

Oil prices ran up about $7 a barrel in the month before Trump announced he was abandoning a nuclear accord with Iran and restoring sanctions on the Islamic Republic.

West Texas Intermediate crude ended Wednesday's session down 54 cents, or almost 1%, at $61.67, its lowest closing price since mid-March (earlier it touched a almost eight-month low at $61.20 per barrel); Brent was down 13 cents to $72 per barrel.

"Our main cooperation with Iran is upstream investment". Iraq has also received a waiver for the import of electricity from Tehran.

Those fears have since eased, but a committee of OPEC members and allied countries recently warned that producers may begin cutting output once again. It makes the U.S. the world's biggest producer of crude.

On Wednesday, Trump said oil prices could easily spike and suggested his administration could moderate its Iran policy.



Victoria's Secret model Adriana Lima gets emotional at her last show
"That first show was something I'll never forget, and every year, it's still such an honor to chosen again", she continued. The show is broadcast on more than 190 countries with models from 20 countries and I got chosen to represent my region.

Keystone XL Ruling Comes at Worst Time for Canadian Oil Industry
The long-running saga of the contentious oil pipeline, which has been the subject of protests and national political debate, took another turn when U.S.

LA Lakers sign C Tyson Chandler after buyout from Suns | AP sports
Smith said Rondo's comments to the Lakers' public relations team about a "punk-ass reporter" were in reference to him. He averaged 6.5 points and 9.1 rebounds in 46 starts for the Suns during the 2017-18 campaign.

Broward County Election Practices Are ‘Nonsensical — Politico Reporter
A Broward County judge has ordered the immediate release of voter information sought by Florida Gov. Mr Trump weighed in with a tweet on the Senate race, citing the possibility of election fraud.

Florida 2018 Election: Recount in Gillum/DeSantis Governor Race
Secretary of State Ken Detzner, who was appointed by Scott, will review the results and decide whether to order recounts. Ron DeSantis and Democratic Tallahassee Mayor Andrew Gillum is also close enough that a recount is possible.

Wildfire destroys entire town as massive blazes tear through California
Late Thursday, more than 2,200 firefighters were battling the flames and the fire remains uncontained, according to Cal Fire. Only a day after it began, the fire near the town of Paradise had grown to almost 110 square miles (285 square kilometers).

Tanzania frees top officials of global press rights group, CPJ
Ms Quintal is the CPJ's Africa program coordinator while Ms Mumo is the organisation's sub-Saharan Africa representative. South Africa's High Commissioner Thami Mseleku is meeting with the pair to discuss the details of their arrest.

Prince Harry reveals why Charles walked Meghan up the aisle
Prince Charles has denied suggestions he'll be a meddling monarch when he one day becomes king , saying "I'm not that stupid".

Supreme court justice Ruth Bader Ginsburg in hospital after fall at court
However, she reportedly hired clerks for the term that extends into 2020, indicating she has no plans to retire. US Supreme Court judge Ruth Bader Ginsburg has fractured three ribs after a fall on Wednesday, the court says .

The Queen extends rare invite to Meghan Markle's mother
Holiday festivities are an event that few outside the royals' inner circle have the privilege of participating in. Kate Middleton , by contrast, spent Christmas with her own family the year she was engaged to Prince William .