Oil prices drop as wave of supply meets global economic gloom

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The Brent crude December LCOc1 futures contract, which expired Wednesday, fell 44 cents to settle at $75.47 a barrel.

In the previous week ending October 19, WTI and Brent lost 3.7 percent and 1.2 percent, respectively, and WTI and Brent settled at 69.12 US dollars and 79.78 dollars per barrel, respectively, at the end of the week. Saudi Arabia raised production by 150,000 barrels a day to 10.68 million a day, the highest in Bloomberg data going back to 1962, while Iranian volumes slipped by 10,000 barrels a day to 3.42 million. Net crude and refined fuel imports sank to a record low 1.2 million barrels a day last week, and may fall to zero as soon as next year, according to analysts at Citigroup.

"Oil prices look to remain under pressure, as fears of global oversupply have returned with a vengeance", said Ashley Kelty, oil and gas research analyst at Cantor Fitzgerald Europe.

Other oil-market news Russia's crude and condensate output averaged 11.412 million barrels a day last month, according to data from the Energy Ministry's CDU-TEK unit.

The market is growing confident output from other sources, including Saudi Arabia/Opec, Russia and the USA, can offset the declines.

Iran's biggest oil customers, all in Asia, are seeking sanction waivers.

Oil has become a risk-off trade and is being negatively impacted by the same factors hurting stocks, including worries of a global economic slowdown, the Federal Reserve tightening its policies, trade concerns and rising dollars.

New York's NYMEХ (New York Merchantile Exchange) is a U.S. futures market founded in 1882. The nation's crude oil inventories have increased six consecutive weeks, EIA reported.

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Brent and USA futures have dropped on growing concern over a possible slowdown in global growth as the U.S-China trade dispute remains unresolved, and is starting to hit emerging market economies in particular.

Russian Federation is pumping oil at a post-Soviet high, USA crude output has topped 11 million barrels a day and a Reuters survey of OPEC production shows the group more than made up for any declines in Iranian shipments in October.

Investors will look to official government data on USA inventories due on Wednesday.

Monthly crude oil production in several USA states reached a record high.

In a bearish signal, the American Petroleum Institute reported USA crude inventories rose 5.7 million barrels last week, more than analyst's forecasts for a 4.1 million barrel build.

US sanctions on Iranian crude oil exports would take effect on November 4, prompting more countries to cut imports from Iran.

Thus, the cost of the futures on Brent crude rose by 0.63%.

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