USA UNLEASHED: America Now 'Pumping More Oil' than Saudi Arabia, Russia

Marco Green
November 9, 2018

Earlier today, the data from China, who is allowed to continue to import oil from Iran, revealed that crude oil imports in October rose to a record high of 9.61 million barrels per day to provide a short-term boost to crude oil prices.

"There's a trifecta of trouble created by US stockpile builds, OPEC overproduction and the watering down of Iran sanctions", said Bob Yawger, director of futures at Mizuho in NY.

U.S West Texas Intermediate crude prices were down almost 1 percent to roughly $61 per barrel in midday trading, down about 20 percent from record prices of $76.41 a barrel in early October, and fell as low as $60.83.

Oil in NY fell into a bear market, adding pressure on OPEC and its allies to cut production just months after adding barrels. Brent for January delivery has retreated about 17% from a four-year high reached in early October.

Meanwhile, US crude inventories rose by 5.8 million barrels in the week ending November 2, to 431.79 million barrels, the EIA said. U.S. Secretary of State Mike Pompeo told FOX News that the easing of sanctions is temporary. On the other hand, the weekly report published by the EIA yesterday showed that crude oil stocks in the USA rose 5.8 million barrels and the output increased to 11.6 million barrels.

Meanwhile, U.S. crude inventories rose by 5.8 million barrels in the week ending November 2, to 431.79 million barrels, the EIA said.

Iran's oil minister on Thursday predicted a painful time ahead for global oil customers as US sanctions take hold, saying waivers that Washington granted to eight major oil-importing countries are not enough for market demands.

Waivers granted to the sanctions intensify the market's perception that sanctions may not limit crude supply as much as initially expected. Brent Crude was also down, 0.86 percent at $71.45. This price structure, known as contango, materializes when market players believe there is a supply glut and decide to store oil rather than sell it. This creates an even larger pool of unsold crude. The Organisation of Petroleum Exporting Countries and its allies are showing they're anxious, signalling last month that they might need to dial back near-record output levels.

"Saudi Arabia and Russian Federation have increased production, and prices have come down $15 a barrel", Hossein Kazempour Ardebili, Iran's representative to OPEC, said in an interview.

Other reports by Click Lancashire

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