Crude Oil Futures Drops By 1% On Higher OPEC Output Survey

India's Iranian Oil Imports Inch Up In September | OilPrice.com

Oil prices slumped to two-week lows on Thursday as global stock markets fell, with investor sentiment made more bearish by an industry report showing US crude inventories rising more than expected.

Brent crude settled up 17 cents a barrel at $80.43, after dropping 3.4 percent on Thursday.

U.S. West Texas Intermediate (WTI) crude futures were down by $1, or 1.4 percent, at $72.17, having also fallen to their lowest since September 28. Brent hit a four-year high of $86.74 last week but slipped as low as $82.66 on Monday. However, the OPEC (and its non-OPEC associates such as Russia) and oil markets are working in the shadow of Trump's tweet and his forthcoming sanctions on Iran's oil industry.

According to a Reuters source with an Indian state refiner, buyers had to delay some August loadings from Iran to later in August or early September, because they were still waiting for government approval to import Iranian oil with Iranian insurance and tankers.

The monthly report from the Organization of the Petroleum Exporting Countries showed the 15-nation producer group's output rose by 132,000 bpd in September to almost 32.8 million bpd.

The spread between WTI and WCS is further compounded by a global oil price rally, with Canadian producers being left behind due to the constraints, said Tran. USA light crude CLc1 was down 15 cents at $74.81.

This was after a 1.3 percent gain earlier in the day.

OPEC cut its forecast for growth in non-OPEC oil supply in 2019 by 30,000 bpd to 2.12 million bpd.

Companies turned off daily production of about 670,800 barrels of oil and 726 million cubic feet of natural gas by midday on Tuesday, according to offshore regulator the Bureau of Safety and Environmental Enforcement (BSEE).

Beard added that USA infrastructure limitations would limit US crude exports that could otherwise compensate and new refining capacity coming online in 2019 would add further tightness.

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 2.2 million barrels, API said.

India, Iran's top oil client after China, was one of the few nations that continued to trade with the Middle Eastern country when sanctions were previously in force.

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

A drop in US oil production this week supported prices.

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