India hails United States waiver on Iran oil, studying details

OPEC output cuts likely next year

OPEC output cuts likely next year

Mr. Trump has repeatedly has asked oil producers to pump more crude to lower prices. Brent crude plunged below $70 a barrel for the first time in six months, shedding 4 percent last week.

U.S. West Texas Intermediate crude futures were on track for the 10th straight day of declines, the longest such streak since July 1984, according to Refinitiv data. The US benchmark had overnight entered a technical bear market, meaning that WTI has now lost 20 percent from its most recent peak last month.

But other big producers, such as Saudi Arabia, Russia and shale companies 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.

In the US, 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.

"Certainly, the waivers on U.S. sanctions for Iranian crude have really accelerated the decline from last month and sensitivity to those issues have been high in recent times", said Daniel Hynes, a Sydney-based senior strategist at Australia & New Zealand Banking Group Ltd.

China National Petroleum Corp (CNPC) said on Friday that it was still taking oil from Iranian fields in which it has stakes.

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

The U.S., Saudi Arabia and Russian Federation are all producing at or near record levels while Washington provided exemptions on some of the biggest exporters of Iranian crude, allowing them to continue to purchase in the near term.

"A slowdown in the global economy remains the key downside risk to oil", Bernstein added.

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.

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