Published: Fri, November 02, 2018
Money | By Ralph Mccoy

US Crude Stocks Rise by 3.2 mln bbls Last Week

US Crude Stocks Rise by 3.2 mln bbls Last Week

Oil prices climbed for the first time in three days on Wednesday, but rising supply and fears over the outlook for demand amid the U.S.

Oil prices declined on Monday as investors anxious that persistent trade tensions between the United States and its trade partners could reduce global crude demand. China's manufacturing growth slowed for the second straight month in October, dragged down by its trade dispute with the US.

Oil has been caught in the global financial market slump this month, with equities under pressure from the trade conflict between the US and China.

On the supply side, however, oil markets remain tense ahead of looming US sanctions against Iran's crude exports, which are set to start next week and are expected to tighten supply, especially to Asia which takes most of Iran's shipments.

Both contracts have fallen about $10 a barrel from four-year highs reached in the first week of October.

The Brent crude January futures contract lost 46 cents, or 0.61 percent, to trade at $74.58 per barrel by GMT0451.

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.

Daniel Cormier says he wants to slap Brock Lesnar at UFC 230
That likely means he has one last fight left after Saturday, and he's made it clear he would prefer that to come against Lesnar. According to UFC President Dana White, Brock Lesnar could once again be cage-side for this next Daniel Cormier fight.

Asia Bibi: Pakistan acquits Christian woman sentenced to death
After the argument, Bibi was assaulted at her home; her accusers said that during the assault she confessed to blasphemy. Mother-of-four Asia Bibi has been on death row since 2010 when she fell foul of the country's extremist blasphemy laws .

Trump asks officials to draft possible trade deal with China
China's Premier Li Keqiang, right, speaks next to Tennessee Senator Lamar Alexander during a meeting with a group of U.S. Republican senators and Congress members at Zhongnanhai leadership compound in Beijing , Thursday, Nov. 1, 2018.

Consultancy JBC Energy said the oil price weakness was "probably driven by the wider negative market sentiment amid speculation about additional USA tariffs on Chinese imports, should upcoming talks fail to produce the desired results".

US oil markets have taken a step lower with the WTI slipping from the 67.00 level following US President Trump's presidential decree that global oil markets have enough supply to make up for any constraints from US sanctions on Iran, which come into effect on November 4th.

US crude stocks rose last week, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday.

In North America, however, there is no oil shortage as USA crude oil production has increased by nearly a third since mid-2016 to around 11 million barrels per day.

The API data, however, also showed supply declines of 3.5 million barrels for gasoline and 3.1 million barrels for distillates, sources said.

The markets could turnaround quickly if a trade deal between the United States and China is announced, but gains are likely to be limited until there is clarity over the impact of the sanctions on Iran which begin on Sunday.

Like this: