LONDON, Oct 31 (Reuters) - Oil prices fell for a third day on Wednesday on evidence of rising global supply despite the imposition of US sanctions next week that are already curbing Iranian crude supply.
Strong demand from overseas paired with higher production has brought crude exports to their second-lowest deficit in the past five years.
The 15-member producer cartel of the Organisation of the Petroleum Exporting Countries (OPEC) boosted oil production in October to the highest since 2016 at 33.31 million barrels per day (bpd), a Reuters survey found this week.
Front-month Brent crude oil futures were at $77,18 a barrel at 0518 GMT, down 16 cents, or 0,2 percent, from their last close. While there are concerns that global demand could falter amid downbeat forecasts for economic growth, other factors are at play too.
With the beginning of November, analytical worries about a market tightening due to the USA sanctions against Iran seem to be nearly forgotten, and putting the matter even further to rest are reports of huge us and Russian Federation output surges - as well as the disclosure that American president Donald Trump has granted eight countries leniency in buying Iranian oil.
This also includes Iran's top buyers, India, South Korea and Japan, while Chinese officials stated that talks were now ongoing for waivers.
The U.S. stock market lost over 2 percent in the early session resulting from warning of higher production costs by heavy equipment maker Caterpillar Inc. and disappointing operating results of industrial conglomerate 3M Corporate in the third quarter.
"The US may use waivers to slow-walk implementation, but these will not apply indefinitely", he added. The price of the West Texas Intermediate (WTI) for December delivery and Brent oil price for December delivery lost 1.58 percent and 2.2 percent, respectively, during the week ending October 26. The contract fell $1.62 to $63.69 on Thursday. Total volume traded was 19 percent above the 100-day average. West Texas Intermediate (WTI) crude futures fell 41 cents to $64.90 a barrel. Meanwhile, Brent further increased 0.74 dollars to 77.63 USA dollars per barrel. Reports said the White House was drafting a trade agreement to be taken up with Beijing during US President Donald Trump and China President Xi Jinping's meeting on the sidelines of the G20 Summit at the end of this month. In 2017, the country consumed more than 19 million barrels of crude oil every day.
While he did not name the eight jurisdictions, saying a list would be released on Monday, Bloomberg News quoted a senior administration official as saying it included India, Japan, India and South Korea, and possibly China and Turkey.
It has never returned to the record 6 million barrels per day (bpd) it pumped in 1974. "We are in a critical area of support at the $65 level".
But oil supply from other countries is rising.
WorleyParsons Ltd., the Australian engineering firm that designs massive energy projects, is seeing customers returning to sea - albeit at a more subdued pace.
USA crude oil production reached 11.3 million barrels per day (b/d) in August 2018, according to EIA's latest Petroleum Supply Monthly, up from 10.9 million b/d in July.