Daily Times

Oil fell towards $53 a barrel on Wednesday, under pressure from rising output in major OPEC and non-OPEC producers and concerns about an economic slowdown that could weaken demand.

Russian production hit a post-Soviet record in 2018, figures showed on Wednesday. Other data showed US output reached a record in October and Iraq boosted oil exports in December.

Brent crude was 60 cents lower at $53.20 a barrel at 1422 GMT. On Dec. 26, it hit $49.93, the lowest since July 2017. US crude slipped 73 cents to $44.68.

“The omens are far from encouraging,” said Stephen Brennock of oil broker PVM, citing rising non-OPEC supply and the likelihood of further increases in oil inventories.

“The current bearish bias will therefore continue in the near term and it stands to reason that oil will struggle to break out from its current trough,” he said.

However, Nitesh Shah, director of research at WisdomTree, saw the prospect of a rebound for Brent because of an OPEC-led supply cut that starts this month and moderating US supply growth.

“We believe we will see an upward correction,” he said. “Recent weakness in prices should slow the growth of US shale production.”

Published in Daily Times, January 3^rd 2019.