Crude oil futures extend decline as oversupply concerns remain high

To put that in context, the BP Statistical Review of World Energy 2018 puts global daily crude production at 92.6 million barrels per day for previous year, so the increase is meaningful.

The United States is warning other countries not to allow Iranian oil tankers into their ports, saying the tankers not only could incur penalties under USA sanctions but may be courting "environmental disaster".

"Should there be an accident involving an Iranian tanker, there is simply no way these Iranian insurance companies can cover the loss", Hook said.

"We appreciate that the U.S. recognized the role which this Port will play to bring strategic and long term benefits to Afghanistan as well as enhance Afghanistan's connectivity with the outside world", the MEA spokesman said.

Iran late a year ago inaugurated the port on the Indian Ocean which provides a key supply route to landlocked Afghanistan and allows India to bypass its arch-rival Pakistan.

Yet, much of Iran's oil exports are "still unsustainable", says Goldman's Hinds.

In October, Iran's crude exports were estimated at 1.82 million bpd by Kpler and 1.5 million bpd by another firm that monitors Iranian shipments.

US President Donald Trump's administration in May reinstated all sanctions lifted under the 2015 nuclear deal, targeting both Iran and countries that trade with it in oil, financial transactions with its Central Bank and the country's port sector.

Front-month Brent crude oil futures were at $70.84 a barrel, 19 cents above their last close.

Those eight countries are Iran's biggest customers and account for around three-quarters of the Islamic Republic's oil exports.

A South Korean delegation including oil buyers is expected to head to Iran next week to discuss resuming Iranian oil imports after a three-month halt, sources told Reuters. -China trade war will dampen fuel demand as supply grows from multiple directions.

The committee is due to hold a meeting next week in Abu Dhabi, the capital of the United Arab Emirates, an ally of Iran's regional rival Saudi Arabia.

In an online video message on Tuesday, Iranian Foreign Minister Mohammad Javad Zarif lashed out at the United States for imposing "illegal and draconian" sanctions on Tehran, saying Washington would once again regret its "unwise measures". Iran has said that Trump should learn from his predecessors who policies to target Iran could not work.

The main downward pressure is coming from rising supply.

Analysts said expectations of an economic slowdown in coming months was outweighing supply-side risks to crude markets from the reintroduced US sanctions against Iran, which started on Monday.

China's October crude imports surged 32 percent from a year earlier to 40.80 million tonnes, or 9.61 million barrels per day (bpd), data from the General Administration of Customs showed on Thursday, climbing from 9.05 million bpd in September.

Earlier this week, Brent dropped to its lowest since mid-August.

Now it will be key to watch "what happens after the exemptions expire in 180 days", the merchant trader said.

On Tuesday, Iran indicated it had so far been able to sell as much oil as it needs despite United States pressure, but it urged European countries opposed to U.S. sanctions to do more to shield Iran, as Russian Federation and Turkey also voiced their objections.

In addition, Weekly Distillate Stocks dropped by 3.465M barrels and Gasoline inventories rose by 1.852M barrels, more than forecasted.

  • Zachary Reyes