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Crude Oil Loses Gains on Friday, Heads to Weekly Loss

October 12, 2018 at 16:41 by Vladimir Vyun

Crude oil fell today and was heading to weekly losses. Earlier, futures for the commodity rallied. Market analysts speculated that the rally was the result of the rise of global stocks, which improved the market sentiment.

But prices fell as traders were concerned that the increase of production from Saudi Arabia and Russia will be more than enough to make up for the loss of Iran’s supply due to the US sanctions, while global demand was stagnating.

The Organization of Petroleum Exporting Countries in its Monthly Oil Market Report revised the outlook for world oil demand growth in 2018 to 1.54 million barrels per day, down by 80,000 bpd from the previous month’s estimate. The forecast for 2019 got a negative revision by 50,000 bpd to 1.36 million bpd. The report said that Russia’s production increased to the post-Soviet record in September.

The International Energy Agency reported that supply from key producers increased since May, led by Saudi Arabia, which allowed the agency to state that “the oil market is adequately supplied for now.”

Yesterday, prices for crude slumped as the Energy Information Administration reported that US crude oil inventories swelled by 6.0 million barrels last week, much more than analysts had expected — 2.3 million.

Futures for delivery of WTI crude oil in November slipped a bit by 0.06% to $70.93 per barrel as of 16:28 GMT on NYMEX today. December contract for Brent crude dropped 0.67% to $79.72 per barrel on ICE.

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