Oil prices fall on signs of rising supply, economy worries

Oil price falls to $75 from high of $86

Oil prices fall on signs of rising supply, economy worries

On Monday, U.S. oil prices inched up 0.07 percent despite vow of Saudi Arabia to enhance oil production.

WTI-Cushing spot prices averaged about 68 dollars per barrel in August, down from the July average of 71 dollars per barrel.

Analysts fear Saudi retaliation would cause supply shock, sending oil prices up.

USA crude stocks rose last week, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday.

US crude oil production reached 11.3 million barrels per day (b/d) in August 2018, according to EIA's latest Petroleum Supply Monthly, up from 10.9 million b/d in July.

The API reported a draw in gasoline inventories as well for week ending October 26 in the amount of 3.5 million barrels.

The waivers are only temporary and the United States will expect the countries that get them to gradually reduce oil imports from Iran in the months ahead, according to reports quoting U.S. administration officials.

By the end of 2019, however, Goldman expects Brent to fall to $65 a barrel, largely due to "the unleashing of Permian (US shale) supply growth once new pipelines come online".

"We still expect that the global oil market will be in deficit in 4Q18", the U.S. bank said.

Brent crude futures had gained 49 cents, or 0.7 percent, to $76.40 a barrel by 0619 GMT.

Refinery crude runs rose by 149,000 barrels per day, EIA data showed.

India had also explained to "at several levels" to the United States why it needed continued access to help build the Iranian port of Chabahar - and its allied infrastructure like roads and rail links - through which New Delhi is sending wheat and other goods to Afghanistan.

But oil prices have continued to drop even as stocks record gains.

Oil has also been under pressure on growing concern over a possible slowdown in global growth as the US-China trade dispute remains unresolved, and is starting to hit emerging market economies in particular.

However, U.S. equities rebounded strongly on Thursday, with the Nasdaq Composite Index jumping about 3 percent in late trading, soothing anxious investors to some extent.

Rising crude oil production is being partially offset by low refinery utilization. The global benchmark crude traded at $9.33 premium to WTI for the same month.

Russian Federation is pumping oil at a post-Soviet high, USA crude output has topped 11 million barrels a day and a Reuters survey of OPEC production shows the group more than made up for any declines in Iranian shipments in October. Still, U.S. crude oil futures prices lost 2.2 percent for the week, marking the third straight weekly loss.

Iran's oil exports have shrunk by roughly 33% as crude importers reduce their purchases ahead of Washington's Sunday deadline. Iran's oil buyers outside the United States will stop or reduce purchases because of secondary sanctions applied on foreign companies that use the US banking system.

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