A Huge Build Reported In EIA Crude Oil Stocks

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As for the justification for the cuts, the International Energy Agency on Wednesday pointed out that global oil supply will outpace demand due to a "relentless" rise in output and slower economic growth in some countries.

US West Texas Intermediate (WTI) crude oil futures were at $55.52 per barrel at 0732 GMT, down 17 cents, or 0.3 percent, from their last settlement.

Global benchmark Brent crude oil futures were up 4 cents at $65.51 per barrel.

Saudi Arabia, Opec's biggest producer, has expressed the need for producers to cut one million barrels a day, reversing a June decision to boost supply to contain a price rally.

Igor Sechin, CEO of Rosneft, agreed, adding it would be "silly" to make predictions about oil prices as it was unclear what action the USA might take, and what other major oil market players, including Saudi Arabia, could do in terms of adjusting production.

Even as the Saudis have promised to reduce output, USA production reached 11.6 million bpd in the most recent week, a new record.

"It is no surprise that prices embarked on a counter-move given their dramatic slump in recent weeks", Commerzbank analysts said in a note.

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Both oil benchmarks are now trading firmly in bear market territory, having fallen more than 20 per cent from their 52-week highs. Another large increase could spike prices lower late in the session.

Demand for its crude will be about 31.5 million bpd, which is 500,000 bpd less than its forecast two months ago and 1.4 million bpd below current output, Opec said this week.

A joint effort between OPEC and Russian Federation to withhold supply from 2017 was a major contributor to crude price rises past year and in the first half of 2018.

If anything, they are driving prices higher as the United States defends many of their members for very little $'s. Brent Crude sank 6.6 percent to $65.47 a barrell. The American Petroleum Institute said late on Wednesday that crude inventories rose by 8.8 million barrels in the week to November 9 to 440.7 million, compared with analyst expectations for an increase of 3.2 million barrels.

"Hopefully, Saudi Arabia and OPEC will not be cutting oil production". Traders are also concerned about the strength of USA shale production and the risk of a slowing global economy.

On the supply side, a surge in USA production is contributing to rising stockpiles. The country's crude output is expected to average 12.06 million bpd in 2019, passing 12 million bpd sooner than expected on surging shale supply, the U.S. Energy Information Administration said this month.

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