CDN NEWS | 
US NEWS 
August 2, 2018, by Grant Smith
(Bloomberg)
Oil sank to the lowest in more than a month as rising U.S. inventories and higher output from OPEC and Russia weighed on the market.
Futures fell for a third day in New York, losing as much as 1.1% to hit their lowest level since June 22. U.S. government data Wednesday showed a surprise gain in nationwide stockpiles. Meanwhile, the Organization of Petroleum Exporting Countries’s July output climbed as Saudi Arabia pumped near-record volumes while Russia boosted production to levels not seen since it joined the cartel in a coordinated cut in January 2017.
The higher supplies from OPEC and Russia are contributing to growing signs of a new glut in the oil market. That’s adding to concern a trade war between the U.S. and China could curb economic growth and limit energy demand, which last month drove crude to the biggest decline in two years.
“We’re seeing continued negative sentiment, driven by worries over growth and demand,” said Ole Sloth Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen.
West Texas Intermediate crude for September delivery fell to as low as $66.92 a barrel and traded at $67.35 on the New York Mercantile Exchange as of 8:57 a.m. local time. The contract declined $2.47 in the previous two sessions. Total volume traded Thursday was about 28 percent below the 100-day average.
Brent for October settlement fell 34 cents to $72.05 a barrel on the London-based ICE Futures Europe exchange, after dipping $1.82 on Wednesday. The global benchmark traded at a $5.86 premium to WTI for the same month after the spread widened to as much as $11.43 in June.
U.S. crude inventories rose 3.8 million barrels last week, according to data from the Energy Information Administration. That compares with a forecast for a 3-million-barrel decline in a Bloomberg survey of analysts. Stockpiles at the Cushing storage hub in Oklahoma fell for an 11th straight week.
Traders are also keeping a close eye on rising output from OPEC and its allies following their accord in June to increase supply, having faced acute pressure from U.S. President Donald Trump to cool oil prices.
Saudi Arabia’s production increased by 230,000 barrels a day in July to 10.65 million barrels per day. The kingdom’s higher supply, along with that from Nigeria and Iraq, pushed up OPEC’s total output by 300,000 barrels a day last month.
Meanwhile, Russia boosted its production in July to just below the post-Soviet record set in October 2016, Energy Minister Alexander Novak said. The nation produced about 11.21 million barrels a day, a jump of 140,000 from a month earlier, according to Bloomberg calculations based on the ministry’s data.
Other oil-market news:
The Trump administration said it’s weighing whether to increase the proposed tariff on $200 billion of Chinese goods, from 10 percent to 25 percent, stepping up pressure on Beijing to change its trade practices. Observed exports of crude and condensate from the Persian Gulf fell in July, dropping to the lowest level since January, according to Bloomberg tanker tracking.
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