Oil drops to 2-month low on US supply

london — Oil fell to the lowest in more than two months on signs of surging US supply and speculation that American sanctions against Iran won’t succeed in reducing exports to zero.

Futures in New York dropped as much as 1 per cent, after falling 1.3 per cent on Wednesday. US crude inventories rose for a sixth week, while Russia was said to raise oil output to a post-Soviet record. The supply surge comes just as concern eases around a halt of exports from Iran, with oil buyers India and South Korea said to agree with the US on the outline of waivers. “Rising oil inventories and growing petro-nations output have calmed the supply fears related to the Iran oil embargo,” said Norbert Ruecker, head of macro and commodity research at Julius Baer Group Ltd in Zurich. “While in the near term, prices are at risk from any further supply disruption, oil should trend lower heading into 2019.”

$75.47 Per barrel was the price of Brent crude futures in London

West Texas Intermediate for December delivery fell as much as 66 cents to $64.65 a barrel on the New York Mercantile Exchange, the lowest since August 16, and was at $64.85 as of 10.50am London time. The contract fell 3.4 per cent in the past three sessions. Total volume traded on Thursday was in line with the 100-day average. Brent for January settlement fell 67 cents to $74.37 a barrel on the London-based ICE Futures Europe exchange, and traded at a $9.35 premium to WTI for the same month. The December contract dropped 44 cents to $75.47 before expiring on Wednesday. —