Crude Drops 7% as Oil Markets Face "Unprecedented" Uncertainty

21 November, 2018, 15:14 | Author: Kevin Carter
  • Oil falls after Russia preaches patience rather than production cuts

Yet the bounce did little to reverse overall market weakness, which saw crude tumble by more than 6%the previous session amid a selloff in global stock markets.

The West Texas Intermediate for January delivery slumped 3.33 USA dollars to settle at 53.43 dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery plunged 4.26 dollars to close at 62.53 dollars a barrel on the London ICE Futures Exchange. The contract fell as much as 6.2 percent earlier in the session to $53.63 a barrel, the lowest since October 2017. The worldwide benchmark fell as much as 7.6 per cent to $61.71, the lowest since December 2017.

Oil's slide has been largely unimpeded since early October when WTI prices were near four-year peaks.

"For the time being it's more about risk", said Jim Ritterbusch, president of Ritterbusch and Associates.

The S&P 500 index hit a three-week low on Tuesday as weak results and forecasts from big retailers fanned worries about holiday season sales, while tech stocks continued to slide on concerns about iPhone sales.

The S&P energy sector (XLE -2.6%) supplants tech as the stock market's worst performer, as US crude oil futures sink to fresh one-year lows, falling alongside stocks as investors dump risk assets; WTI -5% at $54.35/bbl, Brent -5.1% at $63.38/bbl.

Oil prices are around a quarter below their recent peaks in early October, weighed down by surging supply, especially from the United States, as well as a slowdown in global trade.

More news: Macron - Trump: "France is not a vassal and ally"

Further dragging on the oil outlook, OPEC and other forecasters have signaled that the global oil market could produce a surplus in 2019 on slowing demand, despite a dip in Iranian oil exports after USA sanctions recently went into effect. Meanwhile, US President Donald Trump said Saudi Arabia has been "very responsive" to his requests to keep prices low, calling into question Opec's resolve to trim supply.

Wednesday's rebound came after a report by the American Petroleum Institute late on Tuesday that U.S. commercial crude inventories last week fell unexpectedly by 1.5 million barrels, to 439.2 million, in the week to November 16.

Industry group the American Petroleum Institute is scheduled to release its data at 4:30 p.m. EST, followed by government data on Wednesday morning.

OPEC, Russia and other non-OPEC producers are considering a supply cut of between 1 million barrels per day (bpd) and 1.4 million bpd at a December 6 meeting, sources familiar with the issue have said.

Russian Energy Minister Alexander Novak said Monday that the country and its allies in OPEC need to watch the oil market in the coming weeks before making any decisions to reduce output.

"The name of the game in the oil market is volatility", International Energy Agency Executive Director Fatih Birol said at a conference in Oslo.



Tekashi 6ix9ine Arrested by Federal Authorities
According to TMZ , Tekashi, real name Daniel Hernandez , is now in federal custody along with his former manager Shottie . His album Day69: Graduation Day was among the most downloaded records on iTunes following its release in February.

Carlos Ghosn under pressure to quit Renault role from French government
Ghosn allegedly reported only half of the $US88.7 million he earned in a five year period ending in March 2015. So with Ghosn out at Nissan and probably Renault as well, the companies are unlikely to get any closer.

All Blacks captain Read praises Ireland
Ireland coach Joe Schmidt , a potential successor to Hansen as All Blacks coach, wasn't fussed about Hansen's comment. There was a twinkle in Jacob Stockdale's eye as he considered the question. "I guess we'll find out".

Sophia Floersh crash: Formula 3 driver suffers fractured spine
After sitting in 16th place, Floersch reportedly hit the back of Jehan Daruvala on the straight before losing control. Last year, 31-year-old British motorcycle racer Daniel Hergaty was also killed during the Macau Grand Prix.

Packers' Playoff Hopes on Life Support After Seahawks Soar in Fourth Quarter
The only problem is Green Bay still has tough road games against the Minnesota Vikings and Chicago Bears. It was a good game and the teams traded scores down the stretch, but the Seahawks prevailed.

England win toss, bat in Sri Lanka second Test
Karunaratne made a dogged 57 and it was his fourth-wicket stand of 77 with the experienced Mathews that revived Sri Lanka's chase. Dilruwan Perera was the pick of the Lankan bowlers as he scalped four wickets and Malinda Pushpakumara picked up three wickets.

Gillum Concedes Florida Governor’s Race
In a tweet following Gillum's concession, DeSantis wrote, "Now it's time to bring Florida together". Protesters are pictured before a ballot recount in Lauderhill, Florida, U.S., November 12, 2018.

5 people found dead in vehicles torched by fire
Cal Fire Director Ken Pimlott said a "very significant, risky weather pattern" would continue through the end of the weekend. She had to turn her vehicle around and head in another direction to escape, but that all the while, it "scared me to death".

North Korea's Kim inspects testing of newly developed 'tactical' weapon
Global weapons experts said the officials around Kim included a leader of the artillery corps of the Korean People's Army. A short KCNA dispatch said North Korea made a decision to deport him but did not say why and when.

Tory councillor tells Theresa May to resign on radio
She replied: "I'm very sorry that both Dom and Esther felt that they needed to leave the Cabinet, they have done great work". For now, things look like they will still get worse before they get better for the pound .