Oil sinks 7% into bear market on oversupply fears

Rupee rises to 72 level against dollar as crude oil price falls 30

Rupee rises to 72 level against dollar as crude oil price falls 30

"Hopefully, Saudi Arabia and OPEC will not be cutting oil production". That would represent a growth rate of 2.23 million bpd for 2019 from 2018, an upward revision by a considerable 120,000 bpd from OPEC's October Monthly Oil Market Report.

ICE Brent crude in London settled below its lower Bollinger Band this week after breaching a key 50 percent Fibonacci retracement support level in early November.

Oil's fall accelerated on Tuesday, with United States futures dropping to lows not seen in 11 months due to ongoing worries about weakening global demand, oversupply and selloffs across other asset classes, including equities.

THE price of crude oil, which has been falling in the past three weeks, further dropped from $71 per barrel to $69 per barrel, yesterday as the Organisation of Petroleum Exporting Countries, OPEC, predicted oil demand growth to increase by 1.50 mb/d y-o-y, a downward revision from the previous month of 40 tb/d, mainly due to weaker-than-expected oil demand data from the Middle East and, to a lesser extent, China during 3Q18.

The comments from the minister, Khalid al-Falih, show the balancing act the USA allies face in dealing with President Donald Trump's actions related to the oil industry.

Toy Story 4 teaser trailer is Key and Peele's jam
The new trailer shows several of the returning toys, Woody, Buzz Lightyear, Jessie, Mr. and Mrs. Disney•Pixar's " Toy Story 4 " ventures to USA theaters on June 21, 2019 .

Both benchmarks have fallen more than 20 percent since peaking at four-year highs in early October. Oil, which closed at $60.42 in 2017, is now lower for the year. He said there was now an oversupply of oil, leading to plummeting prices, and that the kingdom would curb its output to stabilize the market.

Oil's record losing streak has plunged prices into a bear market and is reverberating around the globe, with the mayhem rattling everyone from bond traders to political leaders and fund managers. That came after reports that Saudi Arabia was considering a production cut at the December OPEC meeting, on increased alarm that supply has started to outpace consumption. "Oil prices should be much lower based on supply", Trump tweeted. In July, Trump called the organization a "monopoly", warning on Twitter that "gas prices are up & they are doing little to help".

Investors should also keep an eye on shale fields in the US, where drillers have continued to increase the number of drilling rigs. Kazakhstan said on Tuesday its oil output rose 4.8 per cent to 74.5 million tonnes in the first 10 months of 2018, equivalent to 1.82 million bpd.

Most analysts expect US output to climb above 12 million bpd within the first half of 2019.

Even as the demand-supply imbalance hurts prices, President Donald Trump fired another salvo in a Monday tweet.

Recommended News

  • Bollywood actress Rakhi Sawant rushed to hospital as stunt goes wrong

    Bollywood actress Rakhi Sawant rushed to hospital as stunt goes wrong

    The Continental Wrestling Entertainment - CWE - was instituted by The Great Khali in 205 in Jalandhar, Punjab. Following this, she complained about severe stomach and back ache.
    Ireland's Conor Murray and Robbie Henshaw ruled out for New Zealand

    Ireland's Conor Murray and Robbie Henshaw ruled out for New Zealand

    Ireland will also be without Robbie Henshaw for the New Zealand and US encounters, after the centre sustained a hamstring strain. Johnny Sexton believes Murray made a "smart" decision in ruling himself out of the Test against the All Blacks.
    Judge: Sides in Florida recount should ‘ramp down’ rhetoric

    Judge: Sides in Florida recount should ‘ramp down’ rhetoric

    Florida law states that if a county fails to turn in its recount totals by the deadline, the results already on file will be used. Angry protesters gathered at an elections office in Broward County on Saturday, waving signs and shouting with bullhorns.
  • 'Mad' Harry Redknapp joins I'm a Celebrity

    'Mad' Harry Redknapp joins I'm a Celebrity

    But to be honest, I have not actually watched the programme. "So no, I don't think doing this will be tougher". The Vamps have a cult following and they'll all be tuning into I'm A Celeb if McVey appears.
    Victoria Beckham Receives the Fashion Icon Award at 2018 PCAs

    Victoria Beckham Receives the Fashion Icon Award at 2018 PCAs

    Yesterday she was announced the victor of the Fashion Icon People's Choice Award and appeared on stage to collect her accolade. The five of us have always had this thing, we support each other on and off stage.
    Brexit deal is waiting to be done, says Barnier

    Brexit deal is waiting to be done, says Barnier

    She added: "Overwhelmingly, the British people want us to get on with delivering Brexit, and I am determined to deliver for them". With the DUP and hardline Brexiteers prepared to vote down any deal, the parliamentary arithmetic is looking increasingly hard .
  • Korean pitcher Ryu accepts Dodgers' qualifying offer

    Korean pitcher Ryu accepts Dodgers' qualifying offer

    A 31-year-old left-hander, Ryu was 7-3 with a 1.97 ERA in 15 starts, sidelined from May 2 to August 15 by a groin injury. Although Grandal had a rough go in the postseason, he has been very good for the Dodgers during his Dodger tenure.
    Why do the Queen and Kate Middleton wear multiple poppies?

    Why do the Queen and Kate Middleton wear multiple poppies?

    Leading the politicians in tribute was Prime Minister Theresa May and Leader of the Opposition, Jeremy Corbyn. Prince William is said to be more famous than his grandmother, the nation's longest reigning monarch.
    Jets Fans Ready to Move on From Bowles; Does Ownership Agree?

    Jets Fans Ready to Move on From Bowles; Does Ownership Agree?

    But he also threw twelve interceptions on only 130 pass attempts. NY now has its byw week before it hosts the Patriots in Week 12. Apparently McDermott and the Bills had seen enough.
  • Bourke St Rampager James Gargasoulas Found Guilty

    Bourke St Rampager James Gargasoulas Found Guilty

    During the trial, Gargasoulas testified that he had received a premonition from God directing him to drive into pedestrians. Six people were killed: Yosuke Kanno , 25, Bhavita Patel , 33, Jess Mudie, 22, Matthew Si , 33, and Thalia Hakin , 10.
    Thugs of Hindostan crashes on first weekday

    Thugs of Hindostan crashes on first weekday

    Helmed by Vijay Krishna Acharya, Thugs Of Hindostan is bankrolled by Aditya Chopra under the banners of Yash Raj Films. In this era of social media, the word of mouth spreads faster than fire and can make or break a movie within hours.
    Faithful dog waits for 80 days by Chinese road where owner died

    Faithful dog waits for 80 days by Chinese road where owner died

    Since the accident, the canine has been waiting for its owner every day, according to a news platform in China , Pear Video . A faithful dog has been waiting for more than 80 days by a busy Chinese highway after its owner died there.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.