The crude oil prices are down in the last session of the week. The main factors driving the trading are the rising output of the three biggest oil producers in the context of the imminent sanctions against Iran. The futures on US crude oil WTI depreciated by 0.35% to 63.47 USD per barrel. The Brent variety dropped with a minimum 0.03% to 72.87 USD per barrel.
Brent’s price has fallen by 12% since early October, while WTI has lost more than 13% of its value.
The pressure is also felt in the physical market, as Saudi Arabia is expected to cut oil prices in December due to higher volume of oil supplies and market saturation.
The Organization of Petroleum Exporting Countries (OPEC) has increased oil production in October to 33.31 million barrels per day. This is 390,000 barrels per day more than September and the highest level since December 2016.
More than 11 million barrels of oil per day are now produced in the United States, which is close to Russian volumes. Russian production rose to 11.41 million barrels in October from 11.36 million barrels in September.
Saudi Arabian oil exports in October were 10.65 million barrels, and the total output of the three largest producers reached 33.41 million barrels. This means that Russia, the United States and Saudi Arabia are responsible for 35% of world production.
Against the backdrop of rising output, sanctions against Iran are expected to come into effect.
The largest Iranian oil customers (all in Asia) want exemption from sanctions, with the market waiting for official information on whether and for whom relief will be available.