Oil Poised for Worst Month in 10 Years
Oil’s on track for its worst month in a decade on growing fears over a global supply glut that’s been exacerbated by American waivers to Iranian crude buyers.
Futures in New York are set to drop about 21% in November, falling for a second month, Bloomberg reported.
While Russia showed a willingness to join Saudi Arabia in curbing output, the outcome of an OPEC meeting in Vienna next week is still unclear as the group is under pressure from President Donald Trump to lower prices.
Meanwhile, the specter of expanding US crude stockpiles has also been haunting the market.
After reaching a four-year high in early October, crude has collapsed more than 30%, marking the worst crash since 2015.
Brent oil prices firmed on Friday on expectations that OPEC and Russia will agree some form of production cut next week, while US crude was weaker due to swelling inventories.
International Brent crude oil futures were at $59.68 per barrel, up 17 cents, or 0.3%, from their last close. US West Texas Intermediate crude futures were at 51.41, down 4 cents.
While oversupply concerns were fueled by American exemptions on sanctioned Iranian oil, a trade dispute between the US and China has threatened to hurt demand.
Oil has remained in an oversold territory this month, and seesawed near the $50 threshold this week -- a key budgetary marker for shale drillers.
“While oil retreated on oversupply concerns and it’s still possible that it could teeter in the short term, prices will go higher in the mid- to long-term,” Lim Jaekyun, a commodities analyst at South Korea's KB Securities Co., said.
source: Financial Tribune
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