Oil teeters near record losing streak ahead of Opec meeting

Oil teeters near record losing streak ahead of Opec meeting

Production has not just risen in the USA, but also in many other countries, including Russia, Saudi Arabia, Iraq and Brazil, stoking producer concerns of a return of oversupply that depressed oil prices between 2014 and 2017.

Global benchmark Brent crude oil fell by 83 cents or 1.17 percent to $69.82 a barrel, while US light crude futures were down 1.24 percent at $59.92 a barrel.

Even with US sanctions on Iranian oil in place, the perception among investors is that there is more than enough supply to meet demand, as reflected by the front-month January Brent futures contract trading at a discount to February.

Meanwhile, Iran vowed it would sell its oil and break sanctions imposed by the United States on its vital energy and banking sectors, the country's president, Hassan Rouhani, told economists at a meeting broadcast live on state television on Monday.

"Crude oil imports rose ... as uncertainty around tariffs on US imports and sanctions on Iran eased", said ANZ bank following the data release.

OIL prices rose on Thursday after record Chinese crude imports eased concerns that a slowdown in the world's No.2 economy could stoke an emerging fuel glut.

China and India were the largest markets for Iranian crude before the onset of sanctions and will remain such for the upcoming six months. "We are aiming for this month", one of the sources said.




However, Washington granted temporary waivers to eight countries, including China and India, the biggest purchasers of Iran's crude.

In the U.S., crude production increased to 11.6 million barrels per day last week, the highest level on record, according to Energy Information Administration data. "Self-insured Iranian tankers engaging in unsafe behavior, with many tons of crude oil on board, is courting environmental and financial disaster".

"In the case of Saudi Arabia our regional analyst believes that fiscal deficit will continue to improve but they project the full year deficit at 3.3 percent with Brent assumed at $74/bbl in 2018", said the report. However, under the US sanctions, the eight "constituencies" that were granted Significant Reduction Exemption (SRE) have the possibility to import up to 1.5 mbpd, making the sanctions whammy largely rhetoric.

The United States is now the world's biggest crude oil producer, pushing Russian Federation and Saudi Arabia to the back seat.

The EIA is predicting that output will reach 12.1 million barrels per day in the new year.

INDIA India is the world's third-biggest oil importer.

Russian Federation and Saudi Arabia, top producers in an OPEC-led alliance, started bilateral talks on a return to production cuts next year, Russia's TASS news agency reported, citing an unnamed source. Pressure from the U.S.to lower prices probably will decrease now that the nation's midterm elections are over, Saxo Bank's Hansen said.

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