Oil prices slumped to more than two-week lows on Thursday as global stock markets fell, with investor sentiment made more bearish by US government data that showed domestic crude inventories rose more than expected last week.
The December ICE Brent crude futures were dropped by 90 cents per barrel i.e.by 1.07% at $83.26 per barrel, whereas, the NYMEX light sweet crude contract was dropped by 63 cents per barrel i.e.by 0.85% at $73.71 per barrel.
Iran's crude oil exports dropped down to 1.1 Million bpd (barrels per day) during the start of October, falling down from 1.6 Million bpd in September since the US sanctions on Iran's oil is just a few weeks away.
Oil prices have rallied this year on expectations that US sanctions on Iran will strain supplies by lowering shipments from OPEC's third-largest oil producer.
Stockpiles of crude and refined products in industrialized countries rose by 14.2 million barrels in August, a second consecutive monthly increase.
Oil stocks took a beating Thursday after OPEC said its production rose in September, easing concerns about a drop-off in Iranian barrels as United States sanctions loom. The global benchmark hit a four-year high of $86.74 last week but slipped as low as $82.66 on Monday.
India had planned to import about 25 million tonnes of crude oil from Iran in the current fiscal year, up from 22.6 million tonnes imported in 2017-18.
OPEC cut its forecast of global demand growth for oil next year for a third straight month on Thursday, citing headwinds facing the broader economy, and key consuming countries in particular, from trade disputes and volatile emerging markets.
Companies turned off daily production of 718,877 barrels of oil and 812 million cubic feet of natural gas by midday on Wednesday, according to the federal offshore regulator, the Bureau of Safety and Environmental Enforcement (BSEE).
The global oil demand outlook of OPEC for 2019 was lowered by 50,000 barrels a day to 1.36 mln barrels daily. The fears are growing that the USA demands for an Iran oil embargo could cause a significant supply shortfall.
Oil futures lost more ground in electronic trading late Wednesday, after settling with a loss of more than 2% in NY.
Refinery crude runs fell by 352,000 barrels per day as utilisation rates dropped 1.6 percentage points, the EIA data showed.
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