WTI Crude Settles in Bear Market, Down 21% From October Peak

Crude Oil

Crude Oil

Mr. Trump has repeatedly has asked oil producers to pump more crude to lower prices.

The two important global benchmarks of the oil market- US West Texas Intermediate and Brent have both declined by over 20 percent from its 4-year highs at the start of October.

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.

Oil enters a bear market as the Organization of the Petroleum Exporting Countries (OPEC) shift gears to a 'produce as much you can mode,' and the current environment is likely to keep crude prices under pressure as the bearish momentum appears to be gathering pace.

But other big oil producers, such as Saudi Arabia, Russia and shale producers in the United States, have increased output steadily, more than compensating for lost Iranian barrels. That would mark an abrupt end to six months of supply increases, reflecting the prospect that USA sanctions on Iran won't be deep enough to prevent another surge of American shale oil creating a new surplus.

Gas flares burn from pipes aboard an offshore oil platform in the Persian Gulf's Salman Oil Field, operated by the National Iranian Offshore Oil Co, near Lavan island, Iran. Though the Iranian exports have declined, countries still have excess stock available.

"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".

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

Meanwhile, with energy prices slumping, Opec and its allies will discuss scenarios including the possibility of cutting production again next year during a meeting in Abu Dhabi on Sunday, according to delegates.

Oil rose as Opec and its allies were said to plan discussions about fresh production cuts next year, responding to recent increases in oil inventories amid surging USA supply.

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