Oil prices fall as United States output soars above 10 million bpd

"Oil prices could not escape the risk-off mood in financial markets".

"Now you have a dollar break to the downside which is pushing crude to three-year highs and probably going to push crude over US$70 on WTI". Economic recovery generally rides on the back of consumption spending as job growth leads to higher consumer outlay.

Chen Bo, president of Unipec - China's largest buyer of US crude - told Reuters that the firm expects to double USA imports this year to 300,000 bpd as it seeks to expand sales in Asia and find new customers for US exports in other regions, including Europe. But data on Tuesday from the American Petroleum Institute had shown a decline of 1.1 million barrels, setting market expectations for a drop after the previous week's big rise. On the whole, stronger demand has been a basic premise in all forecasts for 2018 and any demand shock could therefore derail the price rally.

Meanwhile, West Texas Intermediate (WTI) crude lost 35 cents, or 0.54 per cent to United States dollars 64.15, while Brent crude, the European benchmark, fell 29 cents, or 0.42 per cent, to USD 68.73 a barrel at the New York Mercantile Exchange today.

To oil bears, the drop in crude oil, based on the U.S. production is a valid move.

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Production cuts by OPEC.

Japan's oil imports from Iran were announced in December 2016 at 271,000 bpd.

United States crude fell 2.8 percent to $63.65 per barrel and Brent was last at $67.22, down 1.98 percent on the day.

The U.S. Energy Information Administration (EIA) released its weekly petroleum status report Wednesday morning, showing that U.S. commercial crude inventories increased by 1.9 million barrels last week, maintaining a total U.S. commercial crude inventory of 420.3 million barrels.

Several factors are driving the increase in China's crude oil imports. The purchases of USA oil aren't likely to continue, given the U.A.E.'s own supply, Lipow said. With potentially huge reserves, the country's production and exports are having a direct influence on worldwide prices, which had been largely the domain of the OPEC countries.

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The correlation between the dollar and oil has reasserted itself.

After shedding a massive 666 points on Friday, the Dow Jones Industrial Average fell more than 1,175 points, or 4.6 per cent percent, to 24,345.75 at the close of trading on Monday.

WTI light sweet crude oil was down 81 cents at USD63.28 an ounce. "Crude oil is on its own now, plodding its own path to the downside".

Enterprise Products Partners - which operates more than 5,000 miles of crude oil pipelines and 38 million barrels of crude storage - reported record profits in 2017, boosted by record volumes for its pipelines and marine terminals.

Distillate inventories increased by 3.9 million barrels last week and remained in the middle of the average range for this time of year. Prices could plunge further if $64.91 fails as support. However, a break of the near-term resistances should extend the current gains to the top end of the long-term bullish channel at $72. We could see a technical bounce on the first test of this zone.

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