Oil Slips On Signs of Rising Supplies, Economic Slowdown Jitters

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West Texas Intermediate (WTI) crude futures declined 29 cents to $65.02 a barrel.

United States crude oil production as estimated by the Energy Information Administration showed no change in production for the week ending October 19 at 10.9 million bpd-300,000 bpd off the highest ever U.S. production of 11.2 million bpd reached just weeks ago.

He also said Russian Federation could even assume the leadership position because it is a "heavyweight both in terms of production and in terms of political influence". For example, should the world lose Iran's 2.7 million barrels per day, OPEC may not be able to fill the gap.

The U.S. Energy Information Administration (EIA) released its weekly petroleum status report Wednesday morning showing that U.S. commercial crude inventories increased by 3.2 million barrels last week, maintaining a total U.S. commercial crude inventory of 426 million barrels.

Distillate inventories are still a worry as supply tanked by 4.1 million barrels and are now 5% below average for this time of year.

Week over week, USA crude oil exports rose by 305,000 barrels a day last week and US production rose by 300,000 barrels to 11.2 million barrels a day.

Commodity traders Trafigura and Mercuria would expect the price of European benchmark Brent for Christmas can grow to 90 dollars per barrel and in early 2019 not breach the mark of 100 dollars per barrel.

According to API data, the six-week running tally of crude oil inventory gains equals 27 million barrels.

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However, the effects of the USA withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in May, the resumption of Iran sanctions and the potential response from other countries pose significant uncertainty to the forecast.

"Everyone thought we were going to go into the $90s, but now we are heading for the $60s", said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo, referring to Brent prices.

Oil has been caught in the global financial market slump this month, with equities under pressure from the trade scrap between the world's two largest economies, the United States and China.

Liquids production rose six percent, as growth in North America more than offset decline and higher downtime. US WTI crude, meanwhile, was 0.49% at $63.38 per barrel.

U.S. crude oil supplies increased by around 3.2M barrels last week.

Previous year at this time, a gallon of regular gasoline cost $2.469 on average in the United States. While there are concerns that global demand could falter amid downbeat forecasts for economic growth, other factors are at play too.

The USA has made a decision to temporarily exempt 8 countries including India from possible economic penalties and sanctions for buying oil from Iran.

"Oil prices look to remain under pressure, as fears of global oversupply have returned with a vengeance", said Ashley Kelty, oil and gas research analyst at Cantor Fitzgerald Europe.

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