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Oil Prices Extend Losses as IEA Report Reveals Record Global Supply

Published 13/09/2018, 09:36
© Reuters.  Oil prices extend decline as IEA shows record global supply
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Investing.com - Oil prices extended losses on Thursday after the monthly report from the International Energy Agency showed a jump in global supply to an all-time high.

New York-traded West Texas Intermediate crude futures sank $1.01, or 1.44%, at $69.36 a barrel by 4:34 AM ET (8:34 GMT), compared to $69.91 ahead of the report.

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., lost 68 cents, or 0.85%, to $79.06, compared to $79.55 ahead of the release.

The global oil supply reached a record 100 million barrels per day (bpd), the IEA said in its latest release.

Crude output from the the Organization of the Petroleum Exporting Countries and Russia, rose to a nine-month high in August, to 32.63 million bpd, due to a rebound in Libya production and increases from Iraq, Nigeria and Saudi Arabia, the IEA said.

Non-OPEC supply was also up 2.6 million bpd, led by U.S. production.

The Paris-based agency did warn that ongoing declines in Iranian and Venezuelan output could risk market tightness.

The release follows on the back of the OPEC’s own monthly report, released on Wednesday, in which it lowered its forecast for world oil demand growth in 2018 by around 20,000 bpd, due to slower-than-expected performance in Latin American and the Middle East in the second quarter.

In other energy trading, gasoline futures fell 0.82% to $2.0198 a gallon by 4:35 AM ET (8:35 GMT), while heating oil dropped 0.46% to $2.2474 a gallon.

Lastly, natural gas futures traded up 0.14% to $2.833 per million British thermal units.

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