Oil prices slump 2 percent as Wall Street slides

Oil prices slump 2 percent as Wall Street slides

U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 26 cents, or 0.4 percent, at $71.23 a barrel, after falling 3 percent in the previous session to the lowest since September 21.

USA crude futures were trading down more than 2% at US$73.20 per barrel Wednesday morning, reflecting the declining importance of Gulf of Mexico output that has resulted from the growth of production from the nation's onshore shale fields. It is heading for a 4.2 percent decline this week, the first weekly drop in five. The Shanghai Composite dropped 5.2 percent and the U.K.'s FTSE 100 slipped as much as 1.9 percent.

The Organization of Petroleum Exporting Countries (OPEC) reduced the forecast of global oil demand growth by 80,000 barrels daily to 1.54 mln barrels per day, OPEC said in its report released on Thursday.

Brent crude dropped 3% on the news, sending oil stocks such as ExxonMobil and Chevron Corporation down more than 3%. "The demand outlook is hurt right now because of the situation with the US and China in particular".

Japan's Nikkei.225 was down 0.5 percent on Friday.

Oil headed for the biggest two-day drop since July, with fuels from diesel to gasoline also declining as fears over a worsening trade war rattled markets across the board.

"So there is real commitment in the selling. adding to the idea that we are seeing a turn in the market", he said.

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In its latest Short-Term-Energy-Outlook (STEO), EIA also estimated that US crude oil production averaged 11.1 million barrels per day in September, up slightly from August levels. For 2019, non-OPEC supply is expected to rise by 2.12 million barrels a day to an average of 61.89 million barrels a day, an increase of 14,000 barrels a day compared with last month's estimate.

Reuters however reports that markets were supported as Hurricane Michael closed almost 40 percent of U.S. Gulf of Mexico oil output and U.S. sanctions restricted Iranian exports.

Michael has strengthened into an "extremely dangerous" Category 4 hurricane, according to the latest advisory from the U.S. National Hurricane Center.

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

India's September oil imports were also boosted by the import of 2 million barrels of Iranian oil by Reliance Industries Ltd. Reliance did not respond to a Reuters email seeking comments.

The OPEC's 15 countries have amplified the crude oil outcome in last month to 33.07 million barrels per day-that is the 180,000 barrels per day surge from August-as per the Platts survey of analysts.

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