Oil price decline continues in the second half of the week. Earlier, quotes dropped on the reports about higher oil reserves in the USA.
For now, Brent futures for December decreased on ICE Futures to $78.86/bbl. November futures of WTI oil at e-trading were recorded at $68.77/bbl.
It has been reported earlier that reserves of merchant oil reached 6.49 million bbl in the USA last week. Meanwhile, as Interfax reported, the American Petroleum Institute said that oil reserves were likely to dip by 2.13 million bbl. At the same time, experts from S&P Global Platts expected an upturn by 1.88 million bbl.
As for petroleum, the US Energy Department posted a decline of 2.02 million bbl and distillates – 830,000 bbl. The market analysts believed the volumes can slide by 1.52 million bbl and 1.5 million bbl respectively. Cushing Terminal posted higher reserves of NYMEX oil (1.78 million bbl).
As the market expert commented, export capacities of the US pipeline system are exhausted, but extraction activities keep going on.
The US Energy Department is waiting for further energy sanctions against Iran. According to the reports, the authority forecasts an increase in shale oil production in November by 100,000 bbl per day, to 7.71 million bbl per day. The increase will be covered by the Permian Basin in Texas and New Mexico, where overall output may even hit the recent Iranian figures.