OAKHURST, N.J. (DTN) --- New York Mercantile Exchange nearby delivery month oil futures and the spot month Brent contract on the Intercontinental Exchange eroded further at the market open, with the benchmark crude contracts in bear market status on worries about oversupply amid record production in the United States, Russia and Saudi Arabia.
The ramping up of output was intended to offset lower Venezuelan production and an expected loss of Iranian supply as a result of U.S. imposed sanctions that began Nov. 4. The U.S. issuance of temporary sanctions waivers to eight countries, however, took the air out of that bubble.
The Nymex front-month West Texas Intermediate contract was trading lower for a 10th straight session, in part from calls by the Energy Information Administration for domestic crude output to surpass 12 million barrels per day (bpd) in 2019.
EIA revised lower from a month ago its 2019 world oil consumption projection 500,000 bpd to 101.51 million bpd.
The impact of high oil prices on demand is concerning while there's also questions on world economic growth seen strained by trade disputes. China overnight reported weak wholesale prices and slowing car sales with its consumer price index in October at 2.5%, unchanged from the prior month, matching consensus.
The Joint Ministerial Monitoring Committee will meet Sunday during which Organization of Petroleum Countries and non-OPEC are expected to discuss 2019 production.
Nymex December WTI at just after 9 a.m. ET was trading down $1.03 at $59.64 bbl, while the ICE January Brent contract was 90 cents lower at $69.75 bbl.
Nymex December RBOB futures were down 2.89 cents at $1.6154 gallon and the December ULSD contract was posting a 2.85 cents decline at $2.1398 gallon.
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