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SINGAPORE (Reuters) – Oil prices fell on Thursday from the four-year highs reached in the previous session, under pressure from rising US stocks and after sources announced that Russia and the United States have been able to sell oil. Saudi Arabia had reached a private deal in September to increase crude production.
PHOTO: A pumpjack carries oil to the surface of Monterey Shale, California, USA, April 29, 2013. REUTERS / Lucy Nicholson / File Photo
Brent crude oil futures, LCOc1, traded at $ 85.85 per barrel at 0104 GMT, down 44 cents or 0.5% from their last close.
Brent Wednesday hit a record 86.74 dollars a barrel for four years.
The West West Intermediate (WTI) CLC1 futures price fell 30 cents, or 0.4%, to $ 76.11 per barrel.
"Last week's data showed that the US commercial crude (stocks) was much larger than expected, which generally suggests that oil prices are expected to fall," said Stephen Innes, head of trade for the United States. Asia-Pacific at Oanda, Singapore futures broker.
US C-STK-T-EIA crude oil inventories rose nearly 8 million barrels last week to about 404 million barrels, the largest increase since March 2017, Energy data released on Wednesday. Information Administration.
The weekly utilization rate of the US Midwest refinery has dropped to 78.9%, its lowest level since October 2015, according to the data.
Meanwhile, production of US C-OUT-T-EIA crude oil has remained at a record 11.1 million barrels per day (bpd).
(For a chart on US crude production, inventories and drilling, click on tmsnrt.rs/2wc5wpr)
"This is in addition to the other big news of the day from Riyadh that … Saudi Arabia and Russia will increase their production," Innes said.
Russia and Saudi Arabia reached a private deal in September to increase oil production, Reuters reported on Wednesday, before consulting with other producers, including the rest of the country. the Organization of Petroleum Exporting Countries (OPEC).
Shares of Russia and Saudi Arabia come as markets warmed ahead of US sanctions against the Iranian oil sector, which is expected to come into effect on Nov. 4, and many analysts plan to cut about 1.5 million barrels a day.
On the demand side, there is a growing concern that high oil prices and the weakening of emerging market currencies will create a toxic inflationary mix that could erode fuel demand and economic growth.
"We have looked closely at the signals of demand in the market, and what we found is not good," JBC Energy said Wednesday in a note addressed to customers.
The energy consulting firm has announced that it has revised down its forecast of oil demand between Brent prices above USD 80 and dipped currencies in many emerging markets, as well as growing product inventories and ongoing trade dispute between China and the United States.
"We are not talking about cosmetic changes either. We have reduced our 2018 demand growth forecast from 300,000 b / d to less than 1.1 million b / d, "he said.
(For a graph of oil prices in different currencies, click on tmsnrt.rs/2N67zl9)
Report by Henning Gloystein; Edited by Joseph Radford
