[ad_1]
LONDON (Reuters) – Oil dropped on Tuesday and Brent futures were on track for their largest after-market decline in OPEC's output hit at 2018 high in July, reigniting concerns about supply swamping demand.
An oil tanker unloads crude oil at a crude oil terminal in Zhoushan, Zhejiang Province, China July 4, 2018. REUTERS / Stringer
The Reuters survey released on Monday showed that oil production increased by 70,000 barrels per day (bpd) to 32.64 million bpd, a high for the year.
October Brent crude future fell 91 cents to $ 74.64 a barrel by 1353 GMT. The September contract expires later on Tuesday. U.S. crude futures fell $ 1.28 to $ 68.85.
Brent has lost 5.7 percent this month, in its largest one-month slide since July 2016. U.S. futures have fallen by one, but are still on track for their biggest monthly decline since last October.
(For a graphic on 'OPEC' s Brute price 'click to reut.rs/2LILZaU)
Russian energy minister Alexander Novak said last week that Russia' s output will hit a new 30 – year high of 11.02 million bpd IN 2018. [OPEC/O]
OPEC has opted for OPEC's third-largest producer.
"On the supply side, the latest news from Russia shows they increased production by around 300,000 bpd … moreover in production in the OPEC survey," Senior Saxo Bank manager Ole Hansen said.
"The global balance (between supply and demand)"
(For a graphic on Brent sees largest one-month fall since July 2016 'click reut.rs/2LIUcvL)
US President Donald Trump appeared to be ready to meet with President Hassan Rouhani without any preconditions. Just a week ago Trump threatened on Twitter to unleash severe consequences on Iran.
"The oil market will be affected by the increase in Iranian oil supply, as a result of U.S. sanctions," said ING in a note.
The United States has indicated that it wants Iranian exports to hit zero under the sanctions it pledged to reintroduce in May. These go into full effect in November.
OPEC and the U.S. meets the challenge of Asia and helps to offset supply disruptions from Iran and elsewhere, Reuters poll showed on Tuesday. [O/POLL]
Weekly U.S. inventory data is scheduled for release beginning on Tuesday with the American Petroleum Institute (API), an industry group, followed by the U.S. Department of Energy's Energy Information Administration (EIA) on Wednesday.
Six analysts polled ahead of these reports estimated, on average, that crude stockpiles fell by about 3.2 million barrels in the week ended July 27.
Additional reporting by Aaron Sheldrick in TOKYO; editing by Jason Neely and Alexander Smith
Source link
