Why Crude Oil Could Continue Moving Lower

Oil price falls to $75 from high of $86

Brent, against which Nigeria's oil is priced, had early this month hit a new four-year high of $86.74 per barrel, fuelled by concerns about a shortfall in global supply as U.S. sanctions whittle away at Iranian crude exports. Natural gas volumes decreased four percent "largely due to a continuing near-term shift in USA unconventional development from dry gas to liquids", ExxonMobil said.

Data from Russia's energy ministry this week said the country's oil production was at a 30-year high, producing 11.41 million barrels a day in October. The U.S. has agreed to let eight countries - including Japan, India and South Korea keep buying Iranian oil after sanctions kick in this weekend to prevent a spike in prices, a senior administration official said.

Thursday's drops came after U.S.

News of a global economic slowdown will impact sentiment but the market appears to be relatively well supplied despite the imminent Iran sanction effect.

Oil prices are falling again, Friday, as concerns over short-term supply worries ease, despite the USA sanctions imposed on Iran.

"In theory, we could have been in a bullish market because of sanctions against Iran".

Schork thinks that the crude oil prices are now at a key level of support.

"The bulls got ahead of themselves, but not for a bad reason - spare capacity is indeed very low relative to demand growth at a time when we have big suppliers that are necessarily going to be exporting less for the foreseeable future", Essner said, referring to Iran and Venezuela.

U.S. West Texas Intermediate (WTI) crude futures rose 11 cents to $66.29 a barrel.

Brent crude futures fell US$1.43, or 1.9 per cent, to settle at US$75.91 a barrel. The global benchmark crude traded at $9.33 premium to WTI for the same month.

Financial markets found some support on Tuesday from reports that U.S. President Donald Trump thinks "a great deal" with China is possible on trade.

The end-of-week bounce wasn't enough to offset losses earlier in the week as speculation mounts that supply is exceeding expectations.

China's manufacturing sector in October expanded at its weakest pace in over two years, hurt by slowing domestic and external demand, in a sign of deepening cracks in the economy from an intensifying trade war with the United States.

Are there waivers coming from the United States to some buyers of Iranian crude oil?

Meanwhile, Russia raised crude and condensate output to a record of nearly 11.41 million barrels a day in October, according to a government official, who asked not to be identified.

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