Brent crude prices dip on rising supply, global market woes

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Additionally, hedge fund managers have reportedly cut their bullish positions in crude futures and options for four weeks in a row to their lowest since July 2017, due to an uncertain demand outlook and other factors: in an editorial for Reuters, John Kemp, founding partner at Again Capital, wrote that "Rising oil production from Saudi Arabia, the United Arab Emirates, Kuwait, and Russian Federation has eased concerns about the availability of supplies once us sanctions on Iran are re-imposed in November".

"The most recent report showed oil bulls reducing their long exposure further as the commodity continues to pull off long-term resistance".

The world's biggest miner BHP Billiton, which also has oil and gas assets, has trimmed its expectations of global growth for next year and 2020 by about a half to three quarters of a percentage point, Chief Commercial Officer Arnoud Balhuizen said on Tuesday, citing a "lose-lose" result from the U.S.

The second round of USA sanctions reimposed by president Donald Trump in May kick in on November 4.

"If Turkey gets more oil from Iraq, it will be more hard for Ankara to argue it needs a USA waiver to continue buying Iranian oil", the source told Reuters.

The United States has 875 operating oil drilling rigs in this week, adding two more from the previous week, according to data issued by oil service company Baker Hughes on Friday. Saying that the United States won't sell crude oil from the Strategic Petroleum Reserve (SPR), Secretary Perry also noted that he was "comfortable that the world supply can absorb the sanctions that are coming".

Iran says the U.S. can never prevent it from selling crude oil to worldwide clients, stressing that no other supplier can substitute the kind of oil it provides to overseas markets.

Commodities such as crude have been upset by substantial losses in global equities due to concern over corporate earnings, and fears over the impact to economic growth from escalating trade tensions.

The tight market in Asia is visible in the low amount of unsold crude oil stored on tankers on waters around Singapore and southern Malaysia, the region's main oil trading and storage hub.

Jahangiri also emphasized that Iran had devised mechanisms to counter the impacts of U.S. sanctions.

He added, "Portfolio managers' combined positions in crude and refined products climbed from a low of 310 million barrels at the end of June 2017 to nearly 1.5 billion barrels in late January but have since fallen back to just over half that level".

Crude oil futures fell Monday as investors reduced exposure, extending weakness that started a week ago amid increased investor caution in anticipation of a possible economic slowdown, an increase in oil production and a stronger dollar that could make oil more expensive in other currencies.

Iranian Foreign Minister Mohammad Javad Zarif has said his country will manage to abort anti-Iran sanctions by the US, Press TV reported on October 23.