Oil fell to the lowest in more than six months on signs U.S. supply is accelerating and on speculation that American sanctions against Iran won’t succeed in reducing exports to zero.
Futures in New York dropped 2.5 percent, extending its slide to a fourth day. OPEC crude production rose in October to the highest since 2016, while Russia was said to raise output to a post-Soviet record. The U.S. surpassed Russia in August, with the largest year-on-year supply increase in U.S. history. Also, concern over the loss of Iranian exports eased after India and South Korea were said to agree with the U.S. on the outline of waivers.
Oil tumbled 11 percent last month, the most since July 2016, as an equity rout and U.S.-China trade tensions concerns over economic growth. Still, the Organization of Petroleum Exporting Countries and its allies are sending mixed signals on whether they’ll boost output to fill any shortfall from the return of sanctions on Iran set to kick in on Nov. 4. Read more