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United States oil continues to fall. When will the turnaround come?

United States oil continues to fall. When will the turnaround come?

It said that it expected "subdued global economic growth" to drive demand even lower than Opec was now forecasting. "Oil prices should be much lower based on supply", Trump tweeted.

With this type of trend, falling stock prices cause investor confidence to plummet right along with the oil prices. As of last week, hedge funds and other money managers had reduced their long position in oil contracts to their lowest since August 2017.

Morse was among several commodity traders and experts who less than two months ago said global benchmark Brent crude could spike above $100/bbl if the US followed through with its threat to use sanctions to drive Iranian oil exports to zero.

He said the increase in shortage and price of crude oil is expected to occur in the event that the sanction continued, adding that the issue is going to impact tremendously on the earnings of Nigeria, which relies on revenues from oil to sustain itself.

Saudi Energy Minister Khalid al-Falih said on Monday OPEC agreed there was a need to cut oil supply next year by around one million barrels per day from October levels to prevent oversupply. The IEA estimates total United States oil supply will rise by 2.1 million bpd this year and another 1.3 million bpd in 2019, from a current record of more than 11 million bpd.

OPEC's biggest producer, Saudi Arabia, said on Monday that oil producers need to cut 1 million barrels a day, reversing a June decision to boost supply to contain a price rally.

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To do so successfully, OPEC - under the de-facto leadership of Saudi Arabia - will need Russian Federation on its side, which is not an OPEC member.

Oil has now fallen roughly 30 percent for 12 straight days, driven by worries over rising oil production around the world and weakening demand from developing countries, with expectations for increased supply from the USA and OPEC.

Iranian oil industry has been under pressure from the US efforts to isolate the country by reimposing sanctions. Output, however, rose by 127,000 bpd to 32.9 million bpd, Opec said.

Traders said recent weakness in equities has fanned concerns about global growth, which is also contributing to declines in oil. The U.S. benchmark's 50-day moving average crossed below its 100-day moving average earlier this week, another bearish signal.

The talks are preliminary, however, and the size of the final production cut will largely depend on the starting point the Organization of Petroleum Exporting Countries and its partners use, said one of the people, asking not to be identified because the discussions are private.

Oil rose on Thursday, steadying after losing almost 7 percent over the previous three days, though concern about the prospect of an oversupplied market next year continued to weigh on prices despite OPEC's message that it may cut crude output.