Oil prices dive as inventories add

They also expected to see US crude output contracting in the EIA report, as USA oil companies continued to cut the expense in face of the low oil prices.

According to Genscape, Cushing took in almost 713,000 barrels in the four days to November 3, showing a supply onslaught late in that week which most likely offset an earlier draw, the traders said. Saudi Arabia, the world’s largest oil exporter, also saw daily production of above 10 billion barrels in the past few months.

Other data points to watch would be the US monthly nonfarm payroll report and the weekly USA oil rig count reported by industry group Baker Hughes, both scheduled for release later in the global day.

Brent December futures fell 82 cents to $47.72 a barrel by 1338 GMT, their lowest since mid-September, after settling the previous session down 45 cents. Meanwhile, oil shipments from the Zueitina port in Libya have been halted amid escalating tensions between the two ruling governments.

Crude stockpiles in the USA probably increased by 2.5 MMbbl through October 30, the Bloomberg survey shows.

The U.S. supplies figure was 102.6 million barrels more than a year ago. The US Energy Information Administration, or EIA, reported that crude stockpiles grew by 2.8 million barrels last week, which compared to analyst expectations of…

“The USA, Russian Federation and OPEC combined produce more than 50 percent of global crude, and output from these producers has increased over 2015 despite weakening production in the US”, it added.

Sundance Energy Australia Ltd (ASX: SEA) and Origin Energy Ltd (ASX: ORG) slipped 2.5% and 1.8% respectively while BHP Billiton Limited (ASX: BHP) and Liquefied Natural Gas Ltd (ASX: LNG) were down 1.3% and 3.9%. OPEC has certainly been in the driver’s seat, ramping up production in order to keep prices down and drive the competition, particularly us shale, out of business.

Nymex reformulated gasoline blendstock – the benchmark gasoline contract – was broadly flat at $US1.39 a gallon.

Three-month copper on the London Metal Exchange ended up 0.2 per cent at $US5,134.50 a tonne, having earlier hit a week high of $US5,220.

“Demand in China is not changing because of slower economic growth”, the delegate said, adding that oil demand in the United States may continue to grow next year.