Published: Fri, November 02, 2018
Markets | By Otis Pena

Crude oil futures fall 0.31% on weak global cues

Crude oil futures fall 0.31% on weak global cues

"The strong build in oil inventories is likely to keep downward pressure on oil prices", ANZ Research analysts said in a note.

Meanwhile a Reuters survey found the Organisation of the Petroleum Exporting Countries (OPEC) boosted oil production in October to its highest since 2016, as higher output led by the United Arab Emirates and Libya more than offset a cut in Iranian shipments due to USA sanctions, set to start on November 4.

Benchmark Brent crude oil was down $1.65 a barrel, or 2.1%, at $75.69 a barrel by 2:23 p.m. ET.

Despite this, Brent remains 12 percent below its $86.74 a barrel October high, and crude is on track to post its worst monthly performance since July 2016.

Earlier in the session, Brent reached a session low of US$75.09 a barrel, the lowest since Aug 24.

A stronger USA dollar made the dollar-priced commodity less attractive for holders of other currencies. Now trade is carried out by the exchange's two divisions, the NYMEX Division and the COMEX Division, the first one designed for trades of oil, gas, platinum, palladium, ethanol, coal, electricity and carbon dioxide emissions, the second one for gold, silver, copper and aluminum.

The top three producers - Russia, Saudi Arabia and the United States - pumped 33 million barrels per day (bpd) in September, Refinitiv data showed, an increase of 10 million bpd since the start of the decade.

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According to Wilder, any number above 70 should be considered overbought and any number below 30 should be considered oversold. Current volume in a stock, relative to prior volume, shows if interest is higher or lower in a stock than it was before.

Overall, however, oil has been caught up in broad financial market slumps this month, with stocks falling again on Monday after a report Washington was planning an additional $257 billion worth of tariffs on Chinese goods if upcoming talks between Presidents Donald Trump and Xi Jinping fail to end a trade war between the world's two largest economies.

He pointed to "weakening global economic growth, the ongoing U.S".

Mr Trump said he would like to make a deal now but that China was not ready.

Crude inventories rose by 3.2 million barrels in the last week, compared with analysts' expectations for an increase of 4.1 million barrels.

The API data, however, also showed supply declines of 3.5 million barrels for gasoline and 3.1 million barrels for distillates, sources said.

With the top three producers at over 33 billion bpd, they are meeting close to a third of the world's nearly 100 million bpd of consumption. Saudi Arabia and Russian Federation have said they will pump enough to meet demand once USA sanctions are imposed.

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