USA oil continues to fall. When will the turnaround come?

Will Gas Prices Go Up? Saudi Arabia to Cut Production

Oil prices collapse as OPEC sees production outpacing demand

Tuesday's seven-percent drop was due to ongoing worries about weakening global demand and oversupply.

USA futures closed down 7.1 per cent for a record 12th straight decline and the lowest since November 2017.

The price of Brent crude oil has fallen below the mark of $65 per barrel for the first time since March 16, market data indicated on Wednesday.

Crude oil has lost more than 25% of its value since early October in what has become one of the biggest declines since prices collapsed in 2014. He wouldn't commit to cutting output to help support prices, as some OPEC members have urged, earning them criticism from Trump.

Leaves global oil demand growth forecast unchanged for 2018 and 2019 at 1.3 mln bpd and 1.4 mln bpd, respectively.

Phil Flynn, senior market analyst at Price Futures Group told the news site that the spat between Trump and OPEC was causing tensions in the global market. "Oil prices should be much lower based on supply", Trump tweeted.

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Brent dropped $4.03, or 5.8 per cent, to $66.09 a barrel. USA crude had declined for a record 12 consecutive sessions to the lowest since November 2017.

Capital Economics said it was clear that "fears over excess supply in the oil market are starting to build".

Opec now expects world demand to grow 1.29m barrels a day next year, about 70,000 barrels a day lower than last month's forecast. With a trade war between the USA and China stoking concerns over the global economy, investors are watching if the Organization of Petroleum Exporting Countries and its allies will pump less.

Opec is meeting on December 6 and is expected to decide then whether to carry on the production cuts.

Moreover, financial firms have been hedging the risk incurred by selling put options to oil producers, generating added downward pressure as prices fall toward option strikes, Goldman Sachs said in a note. While the Organization of Petroleum Exporting Countries has indicated it looks to return to production cuts, Russian Federation has not joined the verbal interventions, adopting a "wait and see" approach at an Abu-Dhabi meeting with its allies this week.

Merrill Lynch says US crude production will break through 12 million bpd in 2019, supporting oil exports to the rest of the world. Yet there is also worry about oversupply, resulting once again from the relentless increase in USA crude oil production, which two weeks ago hit 11.6 million barrels daily and will likely continued higher last week as well, as drillers added more rigs.

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