Oil drops with the jump in US stocks

New York (AWP / AFP) – Oil prices fell sharply on Wednesday in New York and London after a tenth consecutive week of rising US oil inventories, fueling concerns over a potential glut of black gold around the world.

Brent crude from the North Sea for delivery in January ended up at $ 58.76 on the London Intercontinental Exchange (ICE), down $ 1.45 from Tuesday's close.

On the New York Mercantile Exchange (Nymex), a barrel of crude for the same maturity has lost $ 1.27 to $ 50.29 after passing during the session near the symbolic threshold of $ 50 under which there is not down for a year.

According to figures released Wednesday by the US Energy Information Agency (EIA), crude oil reserves in the United States rose for the tenth consecutive week.

They have advanced more than 56 million barrels since mid-September.

This growth is fueled by the abundant US production, which stood at 11.7 million barrels a day, a record level unchanged from the previous week.

"Stocks continue to climb while the refinery maintenance period is behind us," Mike Lynch of SEER said, adding that "there is no sign that the situation is going to reverse."

"If we continue to get these numbers, we can expect a further decline in prices," said Kyle Cooper of IAF Advisors, describing the report as a whole "negative for markets."

US production and inventories are part of a growing concern over an oversupply of oil supply, just days before a meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its partners, including Russia, who will discuss next week in Vienna the possibility of slowing down production.

While Saudi Arabia, leader of OPEC members, is campaigning for cuts to boost prices, "Trump is trying to add pressure" by urging continued price cuts, argued ActivTrades analysts.

The US president, who campaigns for cheap gas prices and therefore a low oil price, has a key asset to Ryad: his support for the kingdom in the case of the killed Saudi journalist, Jamal Khashoggi.

"One of the important issues of the next few days will be whether the US President will go so far as to threaten Prince Mohammed Ben Salman at the G20 in Argentina," he said on the weekend.

bur-alb / jum / bh