2018-11-08
Oil prices plummeted to continue falling as US crude oil production climbed to another record high and the country's stocks rose more than expected.
 
The US Energy Information Administration said crude inventories in the United States increased 5.8 million barrels last week, more than twice the analysts' expectations.
 
Crude production reached 11.6 million bpd, a weekly record, but weekly data could be volatile. August data, the latest monthly figures, showed total production reaching more than 11.3 million bpd.
 
US crude futures fell 54 cents to settle at $ 61.67 a barrel, about 20 percent below the $ 76.41 peak it struck in early October.
 
Brent crude fell six cents to settle at $ 72.07 a barrel, recovering from its session low in the post-energy data releases, supported by previous reports that Russia and Saudi Arabia are considering cutting crude output next year.
 
While Iran's oil exports are expected to drop after the United States reinstated sanctions that came into force on Monday, OPEC and others reported that the world oil market could see a surplus in 2019 as demand slows.
 
Washington has also granted eight countries that import Iranian crude exemptions from sanctions imposed on Tehran.
 
Russia and Saudi Arabia have started bilateral talks on a return to production cuts next year, Russian news agency Tass quoted unnamed sources as saying. In June, OPEC decided to ease production restrictions applied since 2017, after pressure from US President Donald Trump