"Right now, from a crude oil perspective, the market is well supplied". As such, this has eased concerns over a potential supply shock from the imposition of oil sanctions on Iran and thus keeping oil prices on a downward spiral. Saudi Arabia raised production by 150,000 barrels to 10.68 million a day, the highest in Bloomberg data going back to 1962, while Iranian volumes slipped by 10,000 barrels a day to 3.42 million, the lowest since March 2016.
As we move closer to the end of the year, investors and producers will be hoping the sector remains strong.
Essner said the bull case for oil would have been sound, but the threat of a full-blown trade war and rising borrowing costs are now poised to curtail demand.
Meanwhile, a Reuters survey found the Organization of the Petroleum Exporting Countries (OPEC) boosted oil production in October to its highest since 2016, as higher output led by the United Arab Emirates and Libya more than offset a cut in Iranian shipments due to US sanctions, set to start on November 4.
Investors now appear less concerned USA sanctions on Iran will leave the world short of oil, though the full impact of the penalties is yet to be seen.More news: Alec Baldwin arrested after NY parking spot spat
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Iran's oil exports have shrunk by roughly 33% as crude importers reduce their purchases ahead of Washington's Sunday deadline. Natural gas volumes decreased four percent "largely due to a continuing near-term shift in USA unconventional development from dry gas to liquids", ExxonMobil said.
However, the effects of the USA withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in May, the resumption of Iran sanctions and the potential response from other countries pose significant uncertainty to the forecast.
US crude oil production exceeded the Russian Ministry of Energy's estimated August production of 11.2 million b/d, making the United States the leading crude oil producer in the world.
Investors will look to official government data on US inventories due on Wednesday. Consultant Rystad AS estimates that even at $55 a barrel, the nation's output may reach 16.5 million barrels a day by 2030. Russian Energy Minister Alexander Novak suggested in late October the country may keep its output at the current level above the Soviet-era record or boost production further.
The United States has 875 operating oil drilling rigs in this week, adding two more from the previous week, according to data issued by oil service company Baker Hughes on Friday.