Oil prices fall into bear market on rising supply, economic concerns

A Chinese vessel approaching beleaguered Iranian tanker Sanchi to help extinguish a fire that started after it collided with a Chinese vessel off China's shores

India gets US waiver for development of strategic Chabahar Port in Iran

"Oil prices continue to decline and are now officially in a bear market, having declined 20 percent from their (October) peak", said William O'Loughlin, investment analyst at Australia's Rivkin Securities.

The extra supply has caused a drop in crude prices, hurting income for other oil producers while helping Iran's foe Trump in the US midterm elections, Kazempour said.

U.S. West Texas Intermediate (WTI) crude oil futures were at $65.60 per barrel at 0509 GMT, down 4 cents, or 0.1 percent from their last settlement.

Crude barrels seen weakening further, WTI clipping into 60.45.

The API was also said to report that inventories at the key pipeline hub in Cushing, Oklahoma, rose by 3.07 million barrels last week.

While a continued build in crude oil will attract most of the attention, it is worth keeping an eye on both gasoline and distillate stocks as well. Condensate is a light oil that is produced with gas and fetches a higher price than crude because it is easier to refine into high-quality products. Plans to link the port to the Iranian rail system, which connects to Afghanistan and on to Central Asia, featured in the U.S. State Department's decision. "We believe Brent prices are oversold as fundamentals still point to a market deficit in 4Q18", Hinds writes.

Analysts continue to believe that oil's slide is a case of bad timing.

Trump said on Monday he wants to impose sanctions on Iran's oil gradually, citing concerns about shocking markets and causing global price spikes.

As the USA sanctions snapped back into place, Washington issued what Pompeo called "temporary" exemptions for eight countries (China, India, Italy, Greece, Japan, South Korea, Taiwan, and Turkey).

"Based on credible data, we now know that up to a dozen Iranian tankers have recently disabled their maritime transponders and have effectively gone dark", Hook said on Wednesday.

For the Iranians, the 180-day waivers provides them with a financial lifeline and time to try and lobby support from other countries against Washington's sanctions.

While sanctions under the previous Barack Obama administration restricted Iran's export capacity to one million barrels per day, the Trump administration wanted to hurt Tehran further by reducing exports to zero, a strategy that didn't work due to limited spare capacity in the global oil markets.

More U.S. oil will likely come. Growing U.S. supplies "add to rising concerns of output", while "the meeting over the weekend between OPEC and Russian Federation may set the tone for the next OPEC meeting in December".

"Certainly, the waivers on US sanctions for Iranian crude have really accelerated the decline from last month and sensitivity to those issues have been high in recent times", said Daniel Hynes, a Sydney-based senior strategist at Australia & New Zealand Banking Group Ltd.

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