Crude Oil Ends Lower For 3rd Straight Session

Oil price falls to $75 from high of $86

Oil price falls to $75 from high of $86

This makes it attractive for traders to store oil for later sale, although Jefferies said "spreads are still insufficient to encourage physical storage".

"We're approaching areas where the market should start to find support", McGillian said.

The reign as world's biggest oil producer may be short-lived: Russian Federation in September produced 11.37 million barrels a day and they may be above 11.4 million in October.

Futures on Brent crude for December delivery, on Wednesday morning, 31 October, up to 76,39 dollars per barrel. "There has also been a lot of market speculation about the White House granting waivers to allow countries to continue to import Iranian barrels when sanctions snapback on November 4", Helima Croft, RBC's global head of commodity strategy, told Yahoo Finance.

By around 1415 BST, the price of Brent Crude oil was 0.30% lower at $72.67 per barrel. WTI gained 0.39 USA dollar to settle at 66.82 dollars a barrel, while Brent further decreased 0.27 dollar to 76.17 dollars per barrel.

New data released on Wednesday from the US Energy Information Administration showed a drop in USA fuel stockpiles, as crude oil inventories rose.

Meanwhile, gasoline and distillate fuel inventories fell 4.8 million barrels and 2.3 million barrels, respectively, which bolstered oil prices.

With Russia pumping oil at a post-Soviet high, USA crude output at more than 11 million barrels per day (bpd.), concerns about renewed US sanctions on Iran have faded in recent days.

"The strong build in oil inventories is likely to keep downward pressure on oil prices", ANZ Research analysts said in a note.

US crude oil production has increased significantly during the past 10 years, driven mainly by production from tight oil formations using horizontal drilling and hydraulic fracturing.

Refinery crude runs rose by 149,000 barrels per day, EIA data showed.

As sanctions take effect, buyers for Iran's crude will dry up.

Crude had edged higher earlier on Friday after Bloomberg reported that U.S. President Donald Trump wants to reach an agreement on trade with Chinese counterpart Xi Jinping at the Group of 20 summit in Argentina later this month, and has asked key U.S. officials to begin drafting potential terms.

"Reduced demand and the idea that we're going to have ample supply seems to have eaten up a lot of the market's strength this year", said Gene McGillian, senior analyst and broker at Tradition Energy.

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