WTI rebounds 1%, settling at $56.25 after record 12-day losing streak

Saudis scramble to stop oil price slide

The 14-member Opec expects oil supply from its rivals to outpace its own output next year.

Consequently, this implies that a production cut may do little to restore prices if Russian and USA production continues to pump at record levels, while demand also falters.

But several developing factors have pushed prices lower in the past few weeks. Price is now moving through and beyond the 100 EMA and 55.00 looks a good long term place for a pause given the support that is there. Output, however, rose by 127,000 bpd to 32.9 million bpd, OPEC said.

Brent crude, used to price worldwide oils, dropped to $65.17 a barrel.

In its monthly report on Tuesday, the Organization of the Petroleum Exporting Countries said world oil demand next year would rise by 1.29 million barrels per day, 70,000 bpd less than predicted last month and the fourth consecutive forecast cut.

Global benchmark Brent crude oil futures were down 9 cents at $65.38 per barrel.

Crude extended an earlier decline after the release of the OPEC report, trading as low as $66.65 a barrel, the lowest since March.

"Crude oil futures succumbed to overwhelmingly bearish pressure amidst ... weaker market fundamentals", said Benjamin Lu, analyst at brokerage Phillip Futures in Singapore. USA crude had declined for a record 12 consecutive sessions to the lowest since November 2017.

Saudi Energy Minister Khalid al-Falih had already said on Monday that Opec had agreed there was a need to cut oil production next year to prevent oversupply.

At the same time, the price for the WTI Crude Oil has also decreased on Wednesday by 8.31 percent and reached $54.95 per barrel for the first time since November 16, 2017, according to the market data. The recovery in oil prices that followed the 2017 OPEC-led supply cut is still prompting more growth in rival production.

Oil markets are being pressured from two sides: a surge in supply and increasing concerns about an economic slowdown.

Riyadh indicated on Monday it was on course to ignore the USA president's wishes at OPEC's next meeting due in December because it saw a need to reduce OPEC output by a collective one million barrels per day during 2019.

The IEA estimates total USA oil supply will rise by 2.1 million bpd this year and another 1.3 million bpd in 2019, from a current record of more than 11 million bpd.

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