BEIJING (Reuters) – Oil prices fell early on Thursday, which increased losses in previous sessions, showing signs of rising supply and increasing concerns that demand may weaken the prospect of a global economic downturn.
PHOTO PHOTO: A pump jacket is seen at sunrise near Bakersfield, California October 1[ads1]4, 2014. REUTERS / Lucy Nicholson / Filfoto
The burned raw component in January LCOc1 futures lost 44 cents, or 0.32 percent to to trade at $ 74.72 per barrel at GMT 0054 GMT. The West Texas Intermediate (WTI) raw CLc1 futures fell 46 cents to $ 65.01 per barrel.
Both references gave their worst monthly earnings since July 2016 on Wednesday, with Brent falling 8.8 percent for the month and WTI fell 10.9 percent.
Thursday's drops came after US Energy Information Administration data showed that crude oil inventors climbed in a sixth straight week.
"The strong built-in oil inventors will probably put pressure on oil prices," ANZ Research analysts said in a note.
In a survey by Reuters, the organization of the petroleum exporting countries (OPEC) increased oil production in October to the highest since 2016 when higher production led by the United Arab Emirates and Libya more than outweighed a decline in Iranian shipments due to US sanctions to start November 4th.
US President Donald Trump said in a presidential memorandum Wednesday that he had determined that there was sufficient supply of petroleum and petroleum products from non-Iran to allow reduction in purchases from that country.
Price inflation is also growing concern over the prospect of a global decline during the ongoing trade war in the US and China, Bruce Xue, an analyst with Huatai Great Wall Capital Management, said.
"Oil investors are now focusing on the potential for global decline," said Xue.
China delivered disappointing PMI data, with the production sector in October growing at the weakest pace for over two years.
Reporting of Meng Meng and Aizhu Chen; Editing Kenneth Maxwell