Oil prices dip sharply on U.S. inventories

Here are the latest oil production numbers from the EIA. All data is in thousand barrels per day unless otherwise noted

FBN's Connell McShane talks to Fasken Oil and Ranch's Rich Culbertson about the drilling process in the Permian Basin.

Crude futures pulled back on Friday, giving up gains from the previous session as trade concerns weighed on the market and fuelled concerns about demand. USA crude futures slumped last month by the most in two years, and traded just below $68 a barrel yesterday on the New York Mercantile Exchange.

Brent for October settlement rose 44 cents to $72.83 a barrel on the London-based ICE Futures Europe exchange.

Crude inventories at Cushing dropped 1.1 million barrels since Friday, July 27, traders said, citing a report issued by energy information provider Genscape.

SEOUL/SINGAPORE, Aug 2 (Reuters) - South Korean imports of USA crude oil are set to hit all-time highs in September and October as refiners snap up supplies to replace Middle East grades, four sources with knowledge of the matter said.

"Trade volume is pretty low in futures today".

Crude prices remained supported by the prospect of an Iranian supply squeeze following the imposition of United States oil sanctions, with yesterday's rally stymied by short-term bearish supply factors that continue to weigh on prices.

According to the Weekly Petroleum Status Report, U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve (SPR), increased by 3.8 million barrels last week. Over the past four weeks, jet fuel supplied averaged 1.79 million barrels per day, down by 1.7 percent from the same period a year ago.

Analysts said the outlook beyond the short-term was turning bearish.

"Bulls are fighting a losing battle".

"Oil has been rebounding every time prices fall to near $68 since mid-July", Makiko Tsugata, a senior analyst at Mizuho Securities Co., said by phone.

Saudi Arabia's output rose by 230,000 barrels a day in July to 10.65 million barrels per day.

Output by top exporter Saudi Arabia has also risen recently, to about 11-million bpd, and U.S. production is around that level as well.

Saudi Arabia, Russia, Kuwait and the United Arab Emirates have increased production, as agreed at a meeting in June, to help to compensate for an anticipated shortfall in Iranian crude supplies once USA sanctions come into force later this year.

The U.S. can get Europe out of the market, and India-Iran's second-largest oil customer after China-will likely reduce Iranian purchases even if it doesn't get entirely out the market, Croft told CNBC.

China's Unipec has also suspended purchases of USA crude amid the growing trade row, sources said. Additionally, he said, US monthly figures for production fell in May, suggesting output may be curbed later in the year.

Related News:

  • Dominic Raab in Brussels for Brexit talks

    Dominic Raab in Brussels for Brexit talks

    The pro-EU Tory said: "We have been calling for some time for the Government to set out the full consequences of no deal". They hope the United Kingdom government will gradually shift its red lines and opt to remain closer to the bloc.
    The Issue Raised By Cohen’s Trump Tape

    The Issue Raised By Cohen’s Trump Tape

    The tape involves Karen McDougal, a former Playboy model who says she had a months-long fling with Trump after they met in 2006. Cohen made a similar payment of $130,000 to porn star and stripper Stormy Daniels , whose real name is Stephanie Clifford.
    Trump administration announces $12 billion 'bailout' for farmers

    Trump administration announces $12 billion 'bailout' for farmers

    The affected countries have in turn targeted USA agricultural products, including soybeans, dairy, meat, produce and liquor. The administration clobbers farmers with an unnecessary trade war then attempts to assuage them with taxpayer handouts.
  • Trump tries to dunk on LeBron James in tweet

    Trump tries to dunk on LeBron James in tweet

    He sits down with @donlemon at the opening of his new elementary school for at-risk children in his hometown of Akron, Ohio . Not one word or follow-up that takes issue with anything either man has actually said. "I know the streets that they walk".
    Samsung plans early Galaxy Note 9 release in response to weak quarter

    Samsung plans early Galaxy Note 9 release in response to weak quarter

    Outlook for the memory chip market remained rosy on demand for server and PC memories as well as new mobile phone launches. By segment, the chip business accounted for 6.1 trillion won, followed by the display division with 1.1 trillion won.
    Longest lunar eclipse of the century on Friday

    Longest lunar eclipse of the century on Friday

    Canberrans won't be able to catch the whole show, however, because the moon will set before the total eclipse finishes. This glorious sight occurs because of the way sunlight bends (refracts) through the Earth's atmosphere.
  • Family of missing United States  student crowdfund for her return: ‘She’s out there’

    Family of missing United States student crowdfund for her return: ‘She’s out there’

    Tibbetts was last seen on July 18th while running in Brooklyn around 7:30 p.m. Kearney police then sent a report to the investigating task force.
    Local businesses keeping watchful eye on 3D-printed guns debate

    Local businesses keeping watchful eye on 3D-printed guns debate

    After a years-long court battle, the state department in late June settled the case against Defense Distributed. When it comes to 3D printed gun , Dukes says his concern is practicality and safety.
    Ryan says he opposes GOP effort to impeach DOJ's Rosenstein

    Ryan says he opposes GOP effort to impeach DOJ's Rosenstein

    Meadows said after that meeting that there was still "frustration" with how the department has handled the oversight requests. Democrats meanwhile have accused Republicans of simply trying to discredit the FBI and undermine the Mueller investigation.
  • No Obstruction in Trump Tweet on Mueller Probe, Sanders Says

    No Obstruction in Trump Tweet on Mueller Probe, Sanders Says

    President Trump escalated his attacks on special counsel Robert Mueller's Russia Probe Wednesday. The president has "always been interested in testifying", said the former New York City mayor.
    Farmers applaud federal help but want trade deals done

    Farmers applaud federal help but want trade deals done

    The EU charges a 10 percent tariff on imports of USA automobiles, and the United States has a 2.5 percent tariff on European cars. Also pictured, from right, is Treasury Secretary Steven Mnuchin and Commerce Secretary Commerce Wilbur Ross.
    Pakistan bomb attack in Quetta kills 18 as country holds general election

    Pakistan bomb attack in Quetta kills 18 as country holds general election

    The military has ruled Pakistan through various coups for almost half of the country's history since independence in 1947. The former ruling party had gone into the general polls, with probably the toughest electoral battle in its history.


Most liked

Saudi Arabia freezes new trade with Canada, expels envoy over 'interference'
Freeland called for Badawi's "immediate" release and said Canada would continue to advocate for the release of both siblings. Riyadh said Canada's statement about "civil society activists" was negative and unfair to the truth.

Trump administration adds to China trade pressure with higher tariff plan
Last month, Washington and Beijing imposed a first round of 25 percent tariffs on 34 billion dollars worth of each other's goods. Trump's trade fights, including the battle with China, are starting to seep into the United States economy based on recent data.

Three dead in Zimbabwe protests over alleged election fraud
Videos have since emerged of Wednesday's situation in the country pending the announcement of the presidential results. He added, "The army's conduct should be promptly investigated, with those responsible brought to justice".

Satellite Footage Shows Rapid Growth of the Deadly Californian Wildfires
Almost 10 days after it started near Highway 299 west of Redding, the fire is only 35 percent contained. Law enforcement officials said the last four people reported as missing were found safe on Wednesday.

Trump thanks Kim for handing over remains of war dead
Experts say that the painstaking identification process could take anywhere between days to decades to complete. But there are reports North Korea continues to build nuclear missiles.

Apple becomes the first company with a $1 trillion valuation
The iPhone maker's market capitalisation reached the figure in afternoon trading in NY as its shares rose above $207. The rise is even more astonishing - 50,000% - since the company first listed in 1980.

North Korea: Spy images pick up 'new activity' at missile site
Reports last week suggested that a separate North Korean site used to develop missile engines was dismantling its facilities. It has in the past two years quickly advanced its nuclear programme. "Yes, they continue to produce fissile material ".

Pompeo warns against Pakistan bailout to pay off Chinese lenders
The poll has been marred by long delays in counting and complaints of rigging by the Pakistan Muslim League-Nawaz (PML-N) party. During his victory speech on Thursday Khan said: "We want to work in every possible way to ensure peace in Afghanistan".

Counting begins in Zimbabwe's first post-Mugabe election
During Mugabe's rule, national elections were overshadowed by repeated voting procedure violations and the suppression of the opposition.

Facebook just had the worst day in stock market history
Brian Wieser at Pivotal Research Group said the company appears to have hit a "wall" on growth in advertising . He was listed Thursday as $81.9 billion poorer than Jeff Bezos , who still hold the top spot on that list.

Blood moon rises but clouds spoil party for many
The fullest eclipse , at 2022 GMT, will be visible from Europe, Russia, Africa, the Middle East, much of Asia and Australia. At that point, it would enter the part of shadow known as the umbra (darkest part of the shadow ) and start to turn red.

'Terrifying' tornados of flame burn California city; 2 dead
A firefighter from the city of Redding was killed as a result of the Carr Fire , California officials said in a statement Friday. Firefighters tried in vain to build containment around the blaze today but flames kept jumping their lines, he said.

Temperatures to rise even higher this week, says Met Office
Tomorrow is tipped to be the hottest day of the year so far with temperatures tipped to topple the monthly record. The hottest July day on record is 36.7C (98F), which was reached at Heathrow on July 1 2015.

Meghan Markle to cut all ties with Father Thomas
There are seven-gated entrances and exits to Windsor Castle, so the new place should afford the couple the privacy they crave. Well, Meghan has always loved her father but after all that he has done, Prince Harry has become her new priority.

Voting for Pakistan's general elections concludes, counting starts
However, election officials have said an official count confirming Pakistan's next government was expected later this evening. The polling started at 8:00 a.m. local time Wednesday and continued uninterrupted up to 6:00 p.m. local time.