US cash crude grades steady as global oil markets set to return to surplus
USO•US cash crude grades were little changed on Friday as the International Energy Agency forecast global oil supply would average 105 million barrels per day in the fourth quarter, 1.7 million bpd above demand. WTI December futures fell 18 cents to $88.56 a barrel, while Brent January futures rose 2 cents to $95.84.
1. Surplus forecast
US cash crude grades were little changed on Friday as the International Energy Agency forecast that global oil markets would return to a surplus in the fourth quarter. Supply is expected to average 105 million barrels per day, 1.7 million bpd above forecast demand; the agency had previously forecast a deficit.
2. Crude prices and supply
WTI December futures fell 18 cents to settle at $88.56 a barrel, while Brent January futures rose 2 cents to $95.84. The Brent-WTI spread widened 36 cents to minus $8.49. US oil rig counts were unchanged at 463.
3. Other market developments
Iraq has been shipping oil to Syria's Baniyas port by an overland route after disruption to its usual exports through the Strait of Hormuz. A White House official said President Donald Trump extended a shipping-law waiver for 90 days, allowing foreign-flagged ships to transport oil and other commodities between US ports.
