Oil prices slip on higher U.S. crude inventories

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Oil prices slip on higher U.S. crude inventories

Brent crude traded at around $57.39 a barrel Friday morning, up 2 per cent, while U.S. crude was around $51.50 a barrel, up 1.8 per cent, the CNBC report adds.

Two different prognostications on Friday paint a gloomy picture for crude prices both in the short and long-term, with one respected analyst blaming USA president Donald Trump for setting into motion a potential series of events that could result in $47 oil as early as next year.

That put both contracts at their highest settlements since September 29.

New York's NYME–• (New York Merchantile Exchange) is a United States futures market founded in 1882.

The reports come out one day later than usual due to the U.S. Columbus Day holiday on Monday.

The IEA said demand for OPEC oil would be 32.5 million barrels per day next year - around 150,000 bpd lower than the group pumped last month.

"We woke up with the strong data from China".

To what extent such statements are motivated by a firm grasp of the conditions of the deal that lifted the sanctions or just an overall resentment of Trump is unclear, but up until recently Iran had been resoundingly criticized by energy analysts for thumbing its nose at the Organization of the Petroleum Exporting Countries (OPEC) cutback strategy and pumping full-tilt, thus exacerbating the global glut.

Unrest in Iraq also underpinned prices.

On Thursday, the International Energy Agency (IEA) said the global outlook for oil markets in 2018 could put a dampener on hopes for higher prices.

Tensions between the two, which traders fear could impinge on oil exports from the region, have been building since Iraq's Kurds overwhelmingly backed independence in a September 25 vote.

OPEC, with other producers including Russian Federation, has agreed to production cuts of 1.8 million bpd.

The data will give traders a better picture of whether a global rebalancing is taking place in the oil market.

Separately, Saudi Aramco said it was considering shelving plans for an worldwide public offering (IPO) in favor of a private share sale to world sovereign funds and institutional investors, the Financial Times reported, citing people familiar with the matter.

Looking ahead to 2018, Watling acknowledged that a key catalyst for the oil market would most likely be Saudi Aramco's initial public offering (IPO) in the second half of next year.

Prices were supported earlier in the week as traders weighed the likelihood that OPEC-led production cuts will be extended through next year in the wake of a meeting between Saudi King Salman and Russian President Vladimir Putin in Moscow.

"Well I think they need to get it away quick before oil goes to $10 (per barrel)", he said.

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