US crude falls by 12% compared to the rise of the oil bull

Crude oil futures posted their third consecutive weekly loss on Friday as rises that pushed oil prices to their highest level in nearly four years are on the verge of retreating.

But worries about declining demand and increasing production from OPEC and Russia have now led traders to look for a potential oversupply.

"The narrative of the supply crisis with Iran has been offset by this increase in supply from OPEC, Russia and Saudi Arabia over the market, "said John Kilduff, founding partner of the Energy Hedge Fund, Again Capital.

Saudi Arabia announced that it had increased its production to 10.7 million barrels per day in October and that it would increase to 11 million barrels a day next month. At the same time, Russia claims to have pumped to a peak of 11.36 million bpd / d in the post-Soviet period. The group of 15 OPEC countries also managed to increase its collective output last month, despite declines in supply in Iran and Venezuela.

Forecasters have also dampened their prospects for growth in global oil consumption due to trade tensions, high oil prices and weak currency in some emerging markets.

Hedge funds and fund managers are liquidating their long positions on oil, or betting that commodity prices will continue to rise.

"The long side of the equation has been saved," Kilduff said.