United States oil continues to fall. When will the turnaround come?

United States oil continues to fall. When will the turnaround come?

United States oil continues to fall. When will the turnaround come?

Additionally, any talk of production cuts will likely raise the ire of President Trump who may have single-handedly driven prices lower on Monday when he told OPEC not to cut production.

January 2019 futures for Brent crude oil were trading below $65 per barrel for the first time since March 16, according to the London-based ICE stock exchange data.

Global benchmark Brent crude rose 0.23 percent to $66.27 per barrel while U.S. West Texas Intermediate (WTI) crude futures were down about half a percent at $55.97 per barrel.

Later on Wednesday, investors will get the opportunity to react to the latest inventories report from the American Petroleum Institute.

But while this argument at face value is persuasive, it's worth noting that less than a month ago most highly respected oil analysts were in a panic over the prospect of a global supply shortage due not only to the USA sanctions in Iran but plummeting output from Venezuela and other countries and figures showing strong, not weak, demand in 2019 and beyond. Since early October, the oil price has fallen by a quarter to below $70 a barrel, its lowest in eight months, which may protect demand to an extent, the IEA said.

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

Oil market fundamentals "are still reasonable" and don't justify the sell-off on Tuesday, Mr Al Mazrouei said.

"This will, in our view, cap any upside above $85 per barrel (for oil prices)", said Jon Andersson, head of commodities at Vontobel Asset Management.

The rebound of oil prices ended a streak of fall with oil prices for 12 consecutive sessions.

Depending on the final baseline for the production cuts, the reduction could be in the range of 1 million to 1.5 million barrels a day, one of the delegates said.

Saudi Arabia is considering pushing through curbs on crude at next month's Opec meeting, on signs that supply is starting to outpace demand.

Most analysts expect United States output to climb above 12 million bpd in the first half of 2019.

The U.S. has meanwhile allowed some of its allies - Greece, India, Italy, Japan, South Korea, Taiwan and Turkey - as well as rival China to continue to purchase Iranian oil despite re-imposed sanctions, as long as they work to reduce their imports to zero.

Fuelled by alleged failure of the Iranian government to respect the earlier agreements reached with the United States and other world powers on the issue of producing nuclear energy for growth, the sanction as declared by the USA government on November 4, this year, has generated discussion, among stakeholders in the value chain.

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