Oil Price - Nov 13
Posted: Tue Nov 13, 2018 6:41 pm
WTI closed today at $55.69/bbl in after-hours trading. In my opinion, it is grossly oversold, but that does not mean that it can't go lower. These big declines are caused by automated computer sales. Hedge funds with long positions set tight stop loss orders and one big sale can cause a "cascade" of sales. The fundamentals have not changed, we still live in a world with very little remaining production capacity. As I have posted here many times September to mid-November is the low point of the year for oil demand. Plus, Saudi Arabia ramped up exports (not production) to please President Trump ahead of the midterm elections. - Dan
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Crude Oil fell for a 12th straight session on Tuesday, its longest slide ever. That coincided with the publication of the monthly OPEC report, which showed a decline in demand during 2019.
Saudi Energy Minister Khalid al-Faleh said producers needed to cut oil output by about 1 million bpd from production levels in October.
In other news, the managing director of the Nigerian National Oil Company said on Tuesday that Nigeria will increase its oil production to 1.8 million barrels per day in 2019 and will increase condensate production to 0.5 million barrels per day.
Adding to the pressure was OPEC's monthly report, which predicted weaker demand for oil in 2019.
OPEC expects the demand for its oil to fall faster than expected in 2019, according to the monthly report issued on Tuesday, the global appetite for the group's crude will reach about 31.5 million barrels per day next year, down 500 thousand barrels per day compared to expectations about two months ago, And below the current production level by about 1.4 million barrels per day.
The report pointed out that although the oil market is now in equilibrium, expectations for 2019 oversupply of the market.
Expectations for non-OPEC supply growth in 2019 rose by 120,000 barrels per day, despite a downward revision of the production outlook for China, Canada, Brazil and Mexico. The United States is expected to be among the countries leading the growth of non-OPEC supply.
Oil futures trading
Brent crude for January delivery fell 2.54 percent to $ 68.34 a barrel, down 6 cents to close at $ 70.12 on Monday, its lowest since April 9.
West Texas Intermediate crude futures for December delivery fell 2.47 percent to $ 58.45 a barrel after dropping 26 cents to $ 59.93 on Monday, the lowest close since Feb. 13.
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Crude Oil fell for a 12th straight session on Tuesday, its longest slide ever. That coincided with the publication of the monthly OPEC report, which showed a decline in demand during 2019.
Saudi Energy Minister Khalid al-Faleh said producers needed to cut oil output by about 1 million bpd from production levels in October.
In other news, the managing director of the Nigerian National Oil Company said on Tuesday that Nigeria will increase its oil production to 1.8 million barrels per day in 2019 and will increase condensate production to 0.5 million barrels per day.
Adding to the pressure was OPEC's monthly report, which predicted weaker demand for oil in 2019.
OPEC expects the demand for its oil to fall faster than expected in 2019, according to the monthly report issued on Tuesday, the global appetite for the group's crude will reach about 31.5 million barrels per day next year, down 500 thousand barrels per day compared to expectations about two months ago, And below the current production level by about 1.4 million barrels per day.
The report pointed out that although the oil market is now in equilibrium, expectations for 2019 oversupply of the market.
Expectations for non-OPEC supply growth in 2019 rose by 120,000 barrels per day, despite a downward revision of the production outlook for China, Canada, Brazil and Mexico. The United States is expected to be among the countries leading the growth of non-OPEC supply.
Oil futures trading
Brent crude for January delivery fell 2.54 percent to $ 68.34 a barrel, down 6 cents to close at $ 70.12 on Monday, its lowest since April 9.
West Texas Intermediate crude futures for December delivery fell 2.47 percent to $ 58.45 a barrel after dropping 26 cents to $ 59.93 on Monday, the lowest close since Feb. 13.