Oil prices spiked in early October on fears that USA sanctions on Iran would thin out global petroleum supplies.
U.S. West Texas Intermediate (WTI) crude futures were at $61.95 per barrel, up 28 cents, or 0.4 percent, from their previous settlement.
The January futures for Brent on London's ICE Futures exchange at 12:21 in Kyiv fell by $0,84 (1,19%) to $69,81 per barrel.
After re-imposing all the sanctions, which were removed as a part of the 2015 nuclear accord, known as the Joint Comprehensive Plan of Action (JCPoA) between Iran and 6 world powers (China, France, Germany, Russia, United Kingdom, and United States), on November 4th, the U.S.is now warning countries against allowing Iranian oil tankers which successfully evade monitoring by switching off its locational signals, to port. While Iranian oil exports are expected to fall because of the U.S. sanctions that came into effect on Monday, reports from Opec and other forecasters indicate that the global market could have a supply surplus in 2019 as demand slows.
"A slowdown in the global economy remains the key downside risk to oil", Bernstein said.
Consultant FGE estimated the waivers granted to China, India and six other nations will allow Iran to continue shipping 1.2 million to 1.7 million barrels a day, more than previously expected. "We are aiming for this month", one of the sources said.
Crude output hit 11.6 million bpd, a weekly record, though weekly figures can be volatile.
On Tuesday, the U.S. Energy Information Administration revised its outlook for American oil production for 2019. The Trump administration restored sanctions on Iran, OPEC's third-biggest oil producer, on Monday.
Crude has tumbled nearly 20% since touching a four-year high last month as bearish supply signals around the globe crowded out concerns about disrupted exports from Iran and Venezuela. Announcements of production increases by Saudi Arabia and other countries to cover anticipated disruptions had led to a crude oil future selloff during most of October.
"I am not at the liberty to give you details about the quantum of crude oil that we will continue to import", Kumar added. It makes the United States the world's biggest producer of crude.
Still, analysts think the scenario will change now that the mid terms are over: Joe McMonigle, analyst at Hedgeye, stated in a note, "OPEC was feeling the Trump pressure but producers took action with the thinking that they just needed to get past the USA election". "Opec and Russian Federation may use cuts to support US$70 per barrel", said Ole Hansen, head of commodity strategy at Saxo Bank.