Oil terminals cut lower Thursday, as the latest data show significant increases in crude production from the major producers who have met the prerequisites.
Raw products in Saudi Arabia, Russia and the United States had climbed in front of US sanctions in the Iranian energy sector, which were expected to contribute to tighter global oil supplies. The sanctions began earlier this week, but the United States gave eight countries temporary deviations so that they could continue to buy Iranian oil.
At the same time, data for strong imports from China contributed in October to limit losses in oil prices.
West Texas Intermediate crude for December delivery
on the New York Mercantile Exchange was down 55 cents, or 0.9%, to $ 61
lost 40 cents, or 0.5%, at $ 71.67 per barrel on ICE Futures Europe.
U.S. Production climbed 400,000 barrels per day to 11.6 million barrels per day for the week ending November 2, the Danish Energy Authority said in its weekly petroleum supply report issued Wednesday.
It marked a record high and "the rate of increase was the highest since October last year when Hurricane Nate caused [1 million barrels a day] of Gulf production to disconnect and quickly return," said Tyler Richey, co-editor of the Seven Report. "But unlike October last year, there are no mitigating circumstances for this great production tip."
The EIA report also revealed a seventh straight weekly growth in US commodities, up 5.8 million barrels last week.
The weekly outputs followed an updated forecast from MER released Tuesday, which increased the 2018 and 2019 prospects for domestic crude production. By 2019, the government is calculating a production average of 12.06 million barrels per day.
While concerns that the Iranian sanctions had previously served to raise oil prices, a swim in October reflected reflections that increased production from Saudi Arabia and Russia would largely compensate for the lost barrels.
Saudi Arabia's production rose to 10.67 million barrels a day in October, according to a S & P Global Platts survey Wednesday. It was most in the survey's 30-year history, which also showed that production of the petroleum exporting countries in October dropped by 30,000 barrels to 33.04 million barrels a day.
Russia's crude production rose to a record -Soviet record of 11.4 million barrels per day in October, according to Bloomberg.
"While focusing on the embargo on Iran and Venezuela's production campaign in recent months, ie the risk of too little supply, the market is increasingly concerned about the prospect of excessive supply," said Norbert Ruecker, head of the macro and Product research by Julius Baer, in a note.
"The petro-nations under the leadership of Saudi Arabia and Russia have opened their cranes, civilian Libya surprised with strong exports in recent times, and the bottlenecks in the pipeline no longer seem to be Too much of a temporary limitation for the United States slate bomb, he says.
At the same time, Chinese government data showed that he imported 9.61 million barrels per day in October, analysts reported in Commerzbank after refinery work had climbed to a record in September, pointing to increased demand for crude oil.
The actual last month's product last week may have been used by Chinese refineries to replenish Iranian oil before US sanctions began to bite, they said and noted Bloomberg data that showed Iranian oil exports to China increased to 741,000 barrels per day last month – the second highest level of the year.
In another energy trade, December gasoline
RBZ8, + 0.16%
rose 0.7% to $ 1,659 a gallon while December heating oil
fell almost 2.3% to $ 2,187 per gallon.
Natural gas futures fell after MER reported on Thursday a larger than expected increase of 65 billion cubic meters for the week ended November 2.
December natural gas
was from 1.2% to $ 3,511 per million British thermal units.
Do you want news about Asia delivered to your inbox? Subscribe to MarketWatch's free Asia Daily newsletter. Sign up here.