Global oil prices fall as supply rises and demand growth slows

OPEC output cuts likely next year

In this context, just months after some fund managers and analysts warned Brent could hit $100 or higher by the end of the year, it now seems a decline back to $70 a barrel is far more likely.

WTI crude CLc1 futures fell 48 cents to $60.19 a barrel, a 0.8 percent loss by 11:24 EST (1624 GMT), after dropping under $60 a barrel to its lowest in eight months.

The two important global benchmarks of the oil market- US West Texas Intermediate and Brent have both declined by over 20 percent from its 4-year highs at the start of October. That put it in "bear market" territory, borrowing a definition used in stock markets.

Oil markets on Friday remained weak as rising supply and concerns of an economic slowdown pressured prices, with U.S. crude now down by 20 per cent since early October.

President Trump on the Iran sanctions and efforts to keep oil prices down.


In the US, crude production increased to a record 11.6 million barrels a day last week and stockpiles rose by 5.8 million barrels, according to the Energy Information Administration.

"A slowdown in the global economy remains the key downside risk to oil", Bernstein added.

Washington has said it wants to force Iranian oil exports down to zero, but Bernstein Energy now expects "Iranian exports will average 1.4 million to 1.5 million barrels per day (bpd)" during the exemption period, versus nearly 3 million bpd in mid-2018.

These sanctions, however, will unlikely cut as much oil out of the market as initially expected as Washington has granted exemptions to Iran's biggest buyers which will allow them to continue buying limited amounts of crude for at least another six months.

Oil rose as Opec and its allies were said to plan discussions about fresh production cuts next year, responding to recent increases in oil inventories amid surging United States supply. Delegates say OPEC ministers and allies will meet Sunday in Abu Dhabi to discuss scenarios including the option to trim production again next year.

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