Crude oil prices under pressure as OPEC fails to curb supply


Crude oil prices under pressure as OPEC fails to curb supply

Crude prices remained strained last week owing to increased US inventory levels, and the overhang of subdued demand on account of the long- extended trade tensions between the US and China. Nymex Crude fell by 1.5 percent while Nymex natural gas closed the week with 6 percent losses on account of lower consumption based on a forecast of normal weather temperature.

OPEC oil production in October rose by 0.934 barrels per day at 29.65 mbpd. The group is currently pumping around 1.6 mbpd, more than the agreed production limit. Earlier, the largest producer Saudi Arabia swiftly raised oil output in October after attacks on oil facilities, as also other members like Iraq and Nigeria over-producing beyond their targeted quotas.

The IEA also said that the strong Non-OPEC oil supply and oil inventories would continue to grow in 2020. Currently, rapidly increasing US shale oil production, along with global slowdown worries and the negative effects of the ongoing trade war, is the factor behind the bearish oil market outlook. Read More

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