Oil nosedives 7%, its biggest plunge in three years

Crude oil prices are in free-fall as fears of a supply glut mount.US oil prices plummeted 7% to a one...

Posted: Nov 13, 2018 7:53 PM
Updated: Nov 13, 2018 7:53 PM

Crude oil prices are in free-fall as fears of a supply glut mount.

US oil prices plummeted 7% to a one-year low of $55.69 a barrel on Tuesday. It was crude's worst day since September 2015.

Banking, finance and investments

Business and industry sectors

Business, economy and trade

Commodity markets

Continents and regions

Donald Trump

Economic indicators

Economy and economic indicators

Energy and resources

Energy and utilities

Energy commodities

Energy economic indicators

Financial markets and investing

Government and public administration

Government bodies and offices

Iran

Middle East

Middle East and North Africa

Oil and gas industry

Oil prices

Political Figures - US

Politics

Saudi Arabia

US federal government

White House

The losses in the oil world have been staggering as worries deepen about excess supply. Crude is down 12 straight days, the longest losing streak since futures trading began in March 1983.

"Bearish sentiment has seized control of the oil markets," said Clay Seigle, managing director of oil at Genscape.

It's been a huge reversal considering oil spiked to a four-year high of $76 a barrel as recently as early October.

Crude crashed into a bear market last week and the selling has only accelerated since then. Not even efforts by Saudi Arabia calmed nervous oil traders down.

The kingdom announced plans on Monday to cut shipments by 500,000 barrels per day. Saudi Arabia also threw its weight behind potential OPEC production cuts at next month's meeting in Vienna.

Much of the concern surrounds the sanctions imposed on Iran. Although the Trump administration initially vowed to zero out Iran's oil exports, American officials later took a softer approach out of fear of riling the energy markets. The Trump administration granted waivers allowing China, India and other nations to keep buying oil from Iran.

Yet Saudi Arabia, Russia and the United States ramped up output in recent months in a bid to avoid a shortfall caused by Iran. US output has spiked to record highs, led by the shale boom in the Permian Basin of West Texas.

At the same time, worries about the health of the world economy have cast a shadow on the demand outlook. Nearly half the fund managers surveyed by Bank of America Merrill Lynch expect global growth to decelerate in the next 12 months, the worst outlook since November 2008.

"Even though demand seems to be holding up pretty well, there are lots of worries over trade wars, emerging markets and the strong dollar," said Michael Wittner, global head of oil research at Societe Generale. "The negative sentiment is palpable."

Meanwhile, President Donald Trump is lobbying Saudi Arabia and OPEC to keep output on track.

"Hopefully, Saudi Arabia and OPEC will not be cutting oil production," Trump tweeted on Monday afternoon. "Oil prices should be much lower based on supply!"

Seigle said that Trump's pressure has added a further element of unpredictability into the oil markets.

"Previous presidents walked on eggshells with OPEC," said Seigle.

At the same time, Saudi Arabia is still reeling from the controversy around the death of Washington Post journalist Jamal Khashoggi.

"Saudi Arabia probably correctly perceives they are in the doghouse internationally," said Seigle.

California Coronavirus Cases

Data is updated nightly.

Cases: 1200624

Reported Deaths: 19116
CountyCasesDeaths
Los Angeles3908917623
San Bernardino921641129
Riverside857691437
San Diego80018997
Orange767611577
Kern40632448
Fresno37994481
Sacramento36579566
Santa Clara33732476
Alameda29116511
San Joaquin25741502
Contra Costa23571261
Stanislaus21585424
Tulare20634308
Ventura19379175
Imperial15960356
San Francisco15377160
Monterey14753116
San Mateo14148170
Sonoma12049157
Merced11550179
Santa Barbara11340135
Kings1068787
Solano1004481
Marin7704129
Placer635468
San Luis Obispo612936
Madera605085
Yolo473775
Shasta471847
Santa Cruz435828
Butte389459
Sutter314415
Napa298817
El Dorado23154
Yuba198110
San Benito186516
Lassen17733
Tehama164925
Mendocino148522
Nevada11849
Tuolumne9818
Lake90919
Glenn8918
Humboldt8509
Colusa6946
Siskiyou6242
Amador55416
Mono5453
Calaveras47822
Del Norte3131
Inyo29016
Plumas2050
Trinity1580
Modoc1310
Mariposa1302
Alpine500
Sierra190
Unassigned00
Chico
Scattered Clouds
37° wxIcon
Hi: 62° Lo: 36°
Feels Like: 37°
Oroville
Clear
36° wxIcon
Hi: 62° Lo: 37°
Feels Like: 36°
Paradise
Scattered Clouds
37° wxIcon
Hi: 59° Lo: 39°
Feels Like: 37°
Chester
Clear
16° wxIcon
Hi: 51° Lo: 28°
Feels Like: 16°
Red Bluff
Clear
33° wxIcon
Hi: 65° Lo: 35°
Feels Like: 29°
Willows
Scattered Clouds
37° wxIcon
Hi: 64° Lo: 33°
Feels Like: 37°
Above average temperatures and sunny skies will be in in the forecast for the next 7 days. Sadly, no rain.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events