Crude Down Record 11th Day

Saudi Arabia has shown concern as supply has started to outpace consumption, fearing a repeat of a glut that brought a price crash in 2014.

Igor Sechin, CEO of Rosneft, agreed, adding it would be "silly" to make predictions about oil prices as it was unclear what action the USA might take, and what other major oil market players, including Saudi Arabia, could do in terms of adjusting production.

Even as the US was planning to grant the Iran waivers, Trump was badgering other members of OPEC to boost production to make up for any loss of Iranian supply.

"These massive crude oil builds that we've seen week after week in the USA, sucked all of the geopolitical risk out of the crude oil price", said Rob Thummel, managing director at Tortoise, which manages $16 billion in energy-related assets.

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. Nervous oil traders have not even been calmed by Saudi Arabian efforts to cut shipments by a half million barrels a day.

Three sources familiar with the matter told Reuters on Wednesday that OPEC and its partners are discussing a proposal to cut oil output by up to 1.4 million bpd for 2019 to avert an oversupply that would weaken prices.

Another reason for plummeting prices is due to Trump's consistent advocation for lower prices. This in turn has offered a bounce for oil prices with Brent crude jumping 1.4%, potentially establishing a near term bottom. He wouldn't commit to cutting output to help support prices, as some OPEC members have urged, earning them criticism from Trump. He also said he hopes to make progress on restoring relations with the USA when he meets Trump at the end of this month on the sidelines of the Group of 20 summit in Argentina.

Brent prices rose 0.6 percent on Wednesday to $65.86 at 1115 GMT (6:13 a.m. EST).

Opec secretary general Mohammad Barkindo said the rise of non-Opec supply was beginning to look "alarming". Alternatively, Russia may propose not to increase output further, instead of a cut, the source said.

Most analysts expect USA output to climb above 12 million bpd in the first half of 2019. The US has asked for production not to be cut.

Anxious by a drop in oil prices due to slowing demand and record supply from Saudi Arabia, Russia and the United States, the Organization of the Petroleum Exporting Countries is talking about a policy U-turn just months after increasing production.

OPEC officials were not sure whether Russian Federation will join another round of supply cuts.