Oil Action: Front-month crude prices are down for a third straight day
Oil Action: Front-month crude prices are down for a third straight day, showing a 0.7% decline on the day, at $55.33. The IEA in its monthly report said that OPEC at current output levels will face a rising surplus in the oil market next year that will drive prices lower. Crude prices are now down by over 4% form the highs seen on Tuesday, before news of the departure of hawkish-on-Iran U.S. national security advisor, John Bolton, and despite data showing lower than expected U.S. inventories in the latest reporting week and new signs of thawing tensions between the U.S. and China. President Trump's move on Bolton, and his decision to delay the implementation of tariff hikes on Chinese goods, which was warmly greeted by Beijing, suggests that he may be looking to stabilise stock markets and the economy, no doubt conscious of the erosion his approval rating has taken in recent weeks. China will likely be looking to throw some further bones Trump's way, sensing the President may be reaching a point where he wants to find a way to declare victory (even if only superficial). Trump may also want to reaffirm his administration's "maximum pressure" campaign on Iran, including sanctions on oil, for leverage in any discussions with Tehran. Something perhaps worth considering for those taking a strongly bearish view on crude prices.