Published: Tue, November 14, 2017
Money | By Armando Alvarado

Oil falls for third day, knocked by rising United States output

Oil falls for third day, knocked by rising United States output

"Overall, there are a few reasons for confidence - compliance from OPEC - and it seems likely they'll extend the cut", Jasper Lawler - a market strategist at London Capital Group - said, referring to the output deal due to expire in March.

The level of inventories held by industrialized above the five-year average "has fallen by more than 50 percent in 2017, with inventories now at around 160 million barrels", consultancy Timera Energy said.

On the supply side, tensions in the Middle East raised the prospects of disruptions, traders said, adding it was unclear whether a strong quake that hit Iran and Iraq on Sunday had impacted the region's oil production.

Crude Oil outperformed the commodities pack by rallying nearly 25 percent in the last 2 months on the back of production cut from OPEC countries and geopolitical tension that is going on in the world.

He added that while he had not heard any OPEC members discussing the possibility of not extending the deal, the time and duration of an extension was still to be decided.

Reuters reported last month, citing OPEC sources, that producers were leaning towards prolonging the agreement until the end of 2018, though the decision could be postponed until early next year depending on the market.

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Four people inside ranging in age from 18 to 25 years and who were not wearing seat belts died instantly, police said. He was able to walk with firefighters before being taken to an area hospital to be examined, WDIV reports.

OPEC and other non-OPEC producers will meet on November 30 in Vienna to decide on oil output policy.

The Paris-based IEA revised demand growth down by 100,000 barrels per day (bpd) for both 2017 and 2018, for an increase of around 1.5m bpd this year, to 97.7m bpd, and 1.3m next, to 98.9m bpd, which could push the market back into a surplus in the first half of next year. The Organization of the Petroleum Exporting Countries' latest monthly data showed Venezuela reporting production of 1.955 million bpd in October, versus 2.085 million in September.

Brent crude futures were at $63.57 per barrel at 0744 GMT, up 5 cents from their last close.

Technically speaking, prices are at a 2-year high and are facing resistance near 3750 levels. This year, all eyes are on the Middle East, the Saudi political purge, and the heating-up of tensions between the kingdom and Iran.

At the time of writing, Brent crude oil prices were trading 0.54 per cent lower at $62.82 per barrel while United States benchmark West Texas Intermediate (WTI) prices were down 0.48 per cent at $56.49 per barrel.

Bahrain said over the weekend that an explosion which caused a fire at its main oil pipeline on Friday was caused by sabotage, linking the attack to Iran, which denied any role in the incident.

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