Wednesday , December 2 2020

Oil fell after US production hit a record high




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The US Energy Information Administration said crude oil inventories in the United States rose 5.8 million barrels last week, more than twice analysts' expectations.

Crude oil production reached 11.6 million barrels per day, a record weekly, but weekly data may change. August data, the latest monthly figures, show total production reached more than 11.3 million bpd.

US crude oil futures fell 54 cents to $ 61.67 a barrel, around 20 percent below $ 76.41 reached in early October.

Brent crude fell six cents to settle at $ 72.07 a barrel, recovering from session lows in the post-energy data release, supported by earlier reports that Russia and Saudi Arabia were considering cutting crude oil production next year.

While Iranian oil exports are expected to decline after the United States returns sanctions that came into force on Monday, OPEC and others reported that the world oil market could see a surplus in 2019 due to slowing demand.

Washington also gave eight countries that imported raw Iranian exemptions from sanctions imposed on Tehran.

Russia and Saudi Arabia have begun bilateral talks about returning to production cuts next year, the Russian Tass news agency quoted unnamed sources as saying. In June, OPEC decided to reduce production restrictions imposed since 2017, after pressure from US President Donald Trump.

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The US Energy Information Administration said crude oil inventories in the United States rose 5.8 million barrels last week, more than twice analysts' expectations.

Crude oil production reached 11.6 million barrels per day, a record weekly, but weekly data may change. August data, the latest monthly figures, show total production reached more than 11.3 million bpd.

US crude oil futures fell 54 cents to $ 61.67 a barrel, around 20 percent below $ 76.41 reached in early October.

Brent crude fell six cents to settle at $ 72.07 a barrel, recovering from session lows in the post-energy data release, supported by earlier reports that Russia and Saudi Arabia were considering cutting crude oil production next year.

While Iranian oil exports are expected to decline after the United States returns sanctions that came into force on Monday, OPEC and others reported that the world oil market could see a surplus in 2019 due to slowing demand.

Washington also gave eight countries that imported raw Iranian exemptions from sanctions imposed on Tehran.

Russia and Saudi Arabia have begun bilateral talks about returning to production cuts next year, the Russian Tass news agency quoted unnamed sources as saying. In June, OPEC decided to reduce production restrictions imposed since 2017, after pressure from US President Donald Trump.


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