Oil prices drop as ‘trifecta of trouble’ may cause glut

OPEC output cuts likely next year

OPEC output cuts likely next year

Benchmark Brent crude fell below $70 a barrel for the first time since early April, down more than 18 percent since reaching four-year highs at the beginning of October.

Oil prices fell to multi-month lows on Friday as global supply increased and investors anxious about the impact on fuel demand of lower economic growth and trade disputes.

Downside targets remain on the radar for crude as it continues to carve a series of lower highs & lows, with oil marking the longest string of losses on record as it declines for 10th consecutive sessions. That put it in "bear market" territory, borrowing a definition used in stock markets.

The oil price slide gained momentum as rising crude exports from the USA and Saudi Arabia dampened concerns over lower Iranian production following the start of United States sanctions this month.

In the USA, crude production increased to a record 11.6 million barrels a day last week and stockpiles rose by 5.8 million barrels, according to the Energy Information Administration.

EU envoy says 'much more work' needed to clinch Brexit deal
All parties have committed to avoid a "hard border" with costly, time-consuming border checks that would hamper business. The worldwide trade secretary said on Thursday the government had "an instruction from our voters to leave the EU".

The imposition of sanctions against Iran and those who do business with Iran has had a very limited impact on oil prices, due in large part to strong output from the US and Russian Federation.

"As OPEC exports continue to rise, inventories continue to build, which is putting downward pressure on oil prices", Bernstein said.

"We have seen the U.S. notification including India in the list of countries granted Significant Reduction Exemption for continued purchase of Iranian crude oil without attracting USA sanctions". The decline is due to an increase in supply from the U.S. and the OPEC (Organisation of Petroleum Exporting Countries).

Al-Falih flew into Baghdad for a meeting with Iraqi Prime Minister Adel Abdul Mahdi ahead of talks between OPEC and its allies in Abu Dhabi Sunday to discuss whether to cut production amid a drop in crude prices.

Washington has said it wants to force Iranian oil exports down to zero, but Bernstein Energy now expects "Iranian exports will average 1.4 million to 1.5 million bpd" during the exemption period, about half the volume in mid-2018.

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