Oil prices drop as ‘trifecta of trouble’ may cause glut

NEW YORK (Reuters) by Jessica Resnick-Ault – Oil prices fell nearly 2 percent on Thursday as investors focused on swelling global crude supply, which is increasing more quickly than many had expected. The market focused on record U.S. crude production and signals from Iraq, Abu Dhabi and Indonesia that output will grow more quickly than expected in 2019. Fears of the potential supply glut dampened a rally early in the session driven by Chinese data that showed record oil imports. “There’s a trifecta of trouble created by U.S. stockpile builds, OPEC overproduction and the watering down of Iran sanctions,” said Bob Yawger, director of futures at Mizuho in New York. Brent crude futures, the global benchmark, fell $1.42, or 1.97 percent, to settle at $70.65 a barrel, the lowest since mid-August. U.S. crude futures fell $1.00, or 1.6 percent, to $60.67 a barrel, the lowest since March 14. In post-settlement trade, both contracts extended losses. China’s crude imports rose to 9.61 million barrels per day (bpd) in October, up 32 percent from a year earlier, customs data showed. China will still be allowed to import some Iranian crude under a waiver to U.S. sanctions that will enable it to purchase… continue reading

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