Oil Sinks to Six-Month Low as U.S. Supply Surge Eases Iran Fear
- Brent below 200-day average for first time since 2017
- Crude production in U.S. overtakes Russia’s in August
The Sea Garnet crude oil tanker is pulled by a tugboat near the El Segundo Offshore Oil Terminal in El Segundo, California, U.S., on Wednesday, Oct. 17, 2018.
Photographer: Tim Rue/BloombergOil fell to the lowest in more than six months on signs U.S. supply is accelerating and on speculation that American sanctions against Iran won’t succeed in reducing exports to zero.
Futures in New York dropped 2.5 percent, extending its slide to a fourth day. OPEC crude production rose in October to the highest since 2016, while Russia was said to raise output to a post-Soviet record. The U.S. surpassed Russia in August, with the largest year-on-year supply increase in U.S. history. Also, concern over the loss of Iranian exports eased after India and South Korea were said to agree with the U.S. on the outline of waivers.