Oil holds losses as crude stockpiles soar

Oil holds losses as crude stockpiles soar

USA crude added 28 cents to $71.25 a barrel.

Output, which includes crude oil, natural gas liquids, biofuels and refinery processing gains, was 2.3 million barrels above the same period previous year and 1.3 million barrels a day higher than the second quarter.

Crude oil prices continued to fall along with the stock market Thursday while President Donald Trump had strong words for countries that ignore US oil sanctions.

West Texas Intermediate for November delivery was at $71.72 a barrel on the New York Mercantile Exchange at 3:46 p.m.in Seoul, up 75 cents.

- United States commercial crude stocks increased 6 million barrels w-o-w amid a palpable decline in refinery throughputs, bringing total inventories to 410 million barrels. Even China has seen the first year-on-year production growth in almost three years in response to higher prices.

For energy importers, the squeeze in supply is stoking inflation, while climbing USA rates lure funds from their markets. The contract declined $2.83 to $80.26 on Thursday. Brent lost 2.2 percent on Wednesday.

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The IEA cut its estimate for global oil-demand growth for both 2018 and 2019 by about 110,000 barrels a day to 1.3 million and 1.4 million barrels a day respectively.

"Oil bulls are bearing the brunt of another bruising session as yesterday's selling frenzy intensifies", said Stephen Brennock, analyst at London brokerage PVM Oil. "This strain could be with us for some time and it will likely be accompanied by higher prices, however much we regret them and their potential negative impact on the global economy".

The global crude market witnessed yet another volatile week.

In the U.S. Gulf of Mexico, producers had cut output by 40 percent on Thursday due to Hurricane Michael, according to the Bureau of Safety and Environmental Enforcement, even as some operators began returning crews to offshore platforms.

"The increase in net production from key suppliers since May of approximately 1.4 million bpd, led by Saudi Arabia, and the fact that oil stocks built by 0.5 million bpd in 2Q18 and look likely to have done the same in 3Q18, lends weight to the argument that the oil market is adequately supplied for now", the IEA said.

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