Brent Extends Loss on Saudi Supply Pledge

Why India needs to rethink its relationship with OPEC

Why India needs to rethink its relationship with OPEC

Crude inventories rose by 6.3 million barrels in the week to October 19, compared with analyst expectations for an increase of 3.7 million barrels. USA oil production remained unchanged at 10.9 million barrels per day (bpd) last week, slightly below a record 11.2 million bpd reached at the start of October.

Despite rising stocks, oil markets are concerned about the impact of US sanctions on Iranian crude exports, which kick in from November 4.

Front-month Brent crude oil futures LCOc1 were at $79.62 a barrel at 0427 GMT, down 21 cents, or 0.3 percent, from their last close.

Brent has slumped about 12 percent after reaching a four-year high earlier this month as USA stockpiles swell just as a trade dispute between China and America threatens global growth, and in turn, energy demand.

The higher crude oil prices at the end of 2018 and in 2019 will likely support increased global crude oil production.

One of the biggest concerns for the oil market is demand.

Crude futures have already come under pressure after forecasters like Organisation of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) knocked down their projections for global oil demand growth.

Saudi Arabia admits Khashoggi died at Istanbul consulate
After speaking with Saudi Arabia's King Salman, President Trump suggested that Khashoggi was targeted by " rogue killers ". The Saudi stock market is down about 4 percent since Khashoggi disappeared on Oct 2.

Crude oil prices have stayed high partly due to United States demands that other nations join economic sanctions and halt imports from Iran by next month.

"We will decide if there are any disruptions from supply, especially with the Iran sanctions looming".

According to Khalid Al-Falih, Russia and Saudi Arabia have agreed to extend the agreement to preserve oil market stability.

Days after India's announcement to continue to buy Iranian crude, US President Donald Trump had said US will take care of countries which defy its directive to stop importing oil from Iran. "Two of our oil companies have made nominations to purchase Iranian oil in November".

OPEC spare production capacity in 2018 of about 1.6 million barrels per day will fall to 1.3 million barrels per day in 2019, down from 2.1 million barrels per day in 2017, it said.

"We export as much as two barrels for any barrel that disappeared from Iran recently". Meanwhile, Russia suggested its current output is higher than in September. The global benchmark has lost more than $10 a barrel since hitting a high of $86.74 on October 3.

According to the forecast of analysts surveyed by Bloomberg, last week the process continued: stocks rose 3 million barrels.

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