Oil prices fall on signs of rising supply, economy worries

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Therefore, the price could continue to drop until the OPEC members meet in December at Vienna. Refinery utilization rates rose by 0.2 percentage points.

WTI-Cushing spot prices averaged about 68 dollars per barrel in August, down from the July average of 71 dollars per barrel. This is the main reason why Trump has found it challenging to impose sanctions on Saudi Arabia over the murder of Jamal Khashoggi.

Plus, it isn't clear how easily - or quickly Iran's crude-oil output can be replaced.

"It's a real risk off, and the same things that are bedeviling the equity market are bedeviling the crude market", he said.

And in the United States, crude production is now well over 11 million bpd, putting the United States in a neck and neck race with Russian Federation for the title of top producer. Outcome of macro data from Key global markets and Sino-US trade talks proceedings will now decide the medium term price action direction.

Moreover, Saudi Arabia's Energy Minister Khalid al-Falih said on Tuesday that the Organization of the Petroleum Exporting Countries (OPEC) and its partners are in "produce as much as you can" mode.

Brent crude futures fell $1.57 a barrel to $73.47 a barrel as of 11:38 a.m. EST (1538 GMT), while US futures were down $1.40 a barrel at $63.91. WTI gained 0.39 USA dollar to settle at 66.82 dollars a barrel, while Brent further decreased 0.27 dollar to 76.17 dollars per barrel.

USA crude inventories rose by 3.22 million barrels for a sixth week, the longest streak of gains since March 2017, the Energy Information Administration reported Wednesday. US West Texas Intermediate (WTI) crude futures fell 86 cents to settle at US$66.18 a barrel, a 1.3 per cent drop.

By the end of 2019, however, Goldman expects Brent to fall to $65 a barrel, largely due to "the unleashing of Permian (U.S. shale) supply growth once new pipelines come online".

Analysts said oil prices were also supported by the upcoming US sanctions against Iran's crude exports that will start on November 4.

As sanctions take effect, buyers for Iran's crude will dry up.

Oil prices were down in afternoon trading prior to the release of the API data on inventories as traders feared additional inventory increases.

Oil's autumn rally, which culminated in a four-year high last month, has unraveled as a rout in global equities fans concerns that fuel demand will suffer, and prices are now approaching a bear market.