Oil falls 1% to multi-month lows as dollar climbs off two-week trough

2018-11-08 19:11:29 GMT (Economies.com)
Oil falls 1% to multi-month lows as dollar climbs off two-week trough

Oil futures fell in American trade, with US crude plumbing March 14 lows, while Brent hit August 16 lows, as the dollar index rebounded from October 22, following earlier data from China, the world's largest energy importer, and the US. 


As of 05:07 GMT, US crude futures due in December fell 1.04% to $61.03 a barrel, while Brent January futures slid 1.17% to $71.23 a barrel, as the dollar index rose 0.29% away from two-week lows. 


Official Chinese customs data showed oil imports hit a new record high at 9.61 million bpd in October, up from 9.05 million bpd in September. 


In the US, the Energy Information Administration reported an increase of 400 thousand bpd in US crude output in the week ending November 2 to a total of 11.6 million bpd, a record high. 


US output is up 2.1 million bpd so far this year, marking a 22% yearly increase, while up by 37.4%, or 3.2 million bpd from mid-2016 levels. 


The US has thus became the world's largest oil producer, passing Russia's 11.41 million bpd, and Saudi Arabia's 10.7 million. 


As for US crude inventories, they rose 5.8 million barrels in the week ending November 2, the seventh such weekly increase in a row. 


Total stocks are now up to 431.7 million bpd, the highest since June 8, in a negative sign for demand in the world's largest oil consumer. 


Otherwise, International Energy Agency Fatih Pirol noted earlier how Venezuelan output continues to fall to possibly below one million bpd, while hoping that Brent prices won't gain further in 2018 past $73 due to the negative impact of higher prices on global growth. 


Iran Sanctions 


Otherwise, as US sanctions went into effect on Iranian oil exports starting November 4, eight countries were granted waivers for 180 days, mainly China, India, South Korea, Japan, Italy, Greece, Taiwan, and Turkey, already the largest importers of Iranian oil. 


In Russia, output rose to a new record of 11.41 million bpd in October, after averaging 11.36 million bpd in September. 


Oil prices lost 7% last week, the fourth weekly loss in a row and the longest such streak of losses since May, and the largest loss since early February. 


US Oil Rig Count 


Baker Hughes, a US oil services company, reported a decline one rig in the oil rig count to a total of 874 rigs away from March 2015 highs. 

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