United States monthly crude oil production sets new record

Gladys Abbott
November 3, 2018

Brent crude futures fell $1.57 a barrel to $73.47 a barrel as of 11:38 a.m. EST (1538 GMT), while USA futures were down $1.40 a barrel at $63.91. Since the beginning of the week Brent fell by 6.1%, WTI - by 5.8%. 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.

Crude oil prices fell more than 2% Thursday, as October's steep losses continued into November.

What's more, EIA said the higher crude oil prices at the end of 2018 and in 2019 will likely support increased global crude oil production.

Imports of Iranian crude by major buyers in Asia hit a 32-month low in September as China, South Korea and Japan sharply cut their purchases ahead of the sanctions, government and ship-tracking data showed.

On Tuesday, U.S. oil prices further dived 4.22 percent as Saudi Arabia vowed to enhance oil production and U.S. stock markets sank on disappointing earnings reports.

"Oil investors are now betting on the potential of global slowdown", Xue said.

"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. The nation's crude oil inventories have increased six consecutive weeks, EIA reported.

More news: RIP Kepler: NASA Retires Planet-Hunting Space Telescope

Oil prices turned positive on Wednesday after government data showed USA fuel stockpiles dropped, offsetting a rise in the nation's crude inventories.

Clayton Allen of Height Securities said Iran's biggest oil customers, all in Asia, were seeking waivers to US sanctions against Iran's petroleum exports. U.S. West Texas Intermediate (WTI) crude futures advanced 27 cents, or 0.4 percent, to $66.45 a barrel on Wednesday.

On Sunday, sanctions against Iran exports are scheduled to go back into effect.

Investors will look to official government data on United States inventories due to be released Wednesday.

Few of the central banks out there can influence oil prices but that doesn't mean some won't still raise rates in response to oil-induced inflation, particularly if they see other factors adding to domestic price pressures.

A Reuters survey on Wednesday showed the Organisation of Petroleum Exporting Countries raised oil production last month to its highest since 2016, led with gains by the United Arab Emirates and Libya.

Bears guarding $ 64 barrier, as rising global supplies continue to weigh.

Other reports by LeisureTravelAid

Discuss This Article