Oil Poised for Worst Month in 10 Years on Specter of Supply Glut - Bloomberg

Oil Poised for Worst Month in 10 Years on Specter of Supply Glut - Bloomberg:

Oil’s on track for its worst month in a decade on growing fears over a global supply glut that’s been exacerbated by American waivers to Iranian crude buyers.

Futures in New York are set to drop about 21 percent in November, falling for a second month. While Russia showed a willingness to join Saudi Arabia in curbing output, the outcome of an OPEC meeting in Vienna next week is still unclear as the group is under pressure from President Donald Trump to lower prices. Meanwhile, the specter of expanding U.S. crude stockpiles has also been haunting the market.

After reaching a four-year high in early October, crude has collapsed more than 30 percent, marking the worst crash since 2015. While oversupply concerns were fueled by American exemptions on sanctioned Iranian oil, a trade dispute between the U.S. and China has threatened to hurt demand. Oil has remained in an oversold territory this month, and seesawed near the $50 threshold this week -- a key budgetary marker for shale drillers.