Crude Oil Prices Extend Slide, Shed Over 1%

Crude Oil Prices Extend Slide, Shed Over 1%

Data released by ClipperData on Wednesday showed July's US oil deliveries to China fell to roughly 280,000 barrels per day (Bpd), compared to around 480,000 Bpd in June.

The price for Brent crude oil, the global benchmark for the price of oil, was down 1.75 per cent as of 9:20 a.m. EDT to $72.91 per barrel.

At 1010 GMT, the October ICE Brent crude futures contract was down 10 cents from Thursday's settle at $73.45/b, while the NYMEX WTI September contract edged down 3 cents to $68.93/b.

US crude stocks rose last week as imports jumped, while gasoline stocks decreased and distillate inventories rose, the Energy Information Administration said on Wednesday. Analysts polled by Reuters had expected a decline of 2.8 million barrels. Saudi Arabia produced at record levels and support from Kuwait and the United Arab Emirates made up for losses elsewhere in the market.

On Tuesday, data released by the American Petroleum Institute showed US crude stockpiles to have risen by 5.59 million barrels in the week, compared to analyst expectations for a 2.8 million-barrel drawdown.

Output by top exporter Saudi Arabia has also risen recently, to about 11-million bpd, and U.S. production is around that level as well.

Crude futures pulled back on Friday, giving up gains from the previous session as trade concerns weighed on the market and fueled concerns about demand.

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U.S. President Donald Trump has sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports.

Oil markets have been halting further declines recently after the energy commodity fell too far, too fast on pumped-up production from OPEC, and supply constraints both within the United States overseas have seen oil markets quick to buy, implying that bullish oil traders, while sidelined on rising production, are remaining close at hand.

Novak said that higher production was needed to maintain the market's stability.

While both Russian Federation and Saudi Arabia have said they are lifting production to make up for countries unable to do so, some OPEC+ members, notably Iran, argue that they're violating the group's agreements and individual country quotas.

On Monday, a Reuters survey found that Opec production reached a 2018 high in July.

When OPEC met in June, the organisation agreed it had been cutting supplies excessively and should restore output to 100 percent of a target set in late 2016.

Investors are seen weighing bullish factors that include potential supply disruptions to Iranian crude exports against more bearish indicators, such as a ramp-up in production by OPEC and its allied partners.

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