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Thursday, 04 October 2018 11:00

Oil falls as Saudi and Russia agree output rise

Oil falls as Saudi and Russia agree output rise

Oil prices on Thursday fell from four-year highs reached the previous session, pressured by rising U.S. inventories and after sources said Russia and Saudi Arabia struck a private deal in September to raise crude output, Caspian Energy News (www.caspianenergy.net) reports with reference to Reuters.

Brent on Wednesday hit a four-year high of $86.74 a barrel.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 30 cents, or 0.4 percent, at $76.11 a barrel.

U.S. crude oil stocks rose by nearly 8 million barrels last week to about 404 million barrels, the biggest increase since March 2017, Energy Information Administration data showed on Wednesday.

Meanwhile, U.S. crude oil production remained at a record-high of 11.1 million barrels per day (bpd).

Russia and Saudi Arabia struck a private deal in September to raise oil output to cool rising prices, Reuters reported on Wednesday, before consulting with other producers, including the rest of the Organization of the Petroleum Exporting Countries (OPEC).

Russia’s and Saudi Arabia’s actions come as markets have heated up ahead of U.S. sanctions against Iran’s oil sector, which are set to kick in from Nov. 4, and which many analysts expect to knock around 1.5 million bpd of supply out of markets.

On the demand side, there is increasing concern that high oil prices and weakening emerging market currencies are creating a toxic inflationary mix that could erode fuel demand and economic growth.

More details: https://www.reuters.com/article/us-global-oil/oil-falls-as-saudi-and-russia-quietly-agree-output-rise-u-s-stocks-swell-idUSKCN1ME03M

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