Crude futures fall as traders get in position for inventory build-up

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China - the leading importer of Iranian oil - is still in discussions with the USA on terms, but is among the eight countries, according to two people familiar with the discussions who also asked not to be identified. In a post on Twitter on Thursday, Trump had said he had a "long and very good conversation" with Jinping and that the trade discussions were "moving along nicely".

Yet over the past 20 trading sessions, oil and stocks both peaked in early October and both have lost almost 10 percent through the end of the month.

Brent oil prices dipped yesterday, weighed down by ongoing weakness in global stock markets and by signs of rising global supply despite looming sanctions on Iran's crude exports.

New data released on Wednesday from the US Energy Information Administration showed a drop in USA fuel stockpiles, as crude oil inventories rose.

Oil is sold in dollars, so a strong greenback increases the cost of crude for emerging markets and threatens to derail demand for the commodity.

The month of November saw crude oil continue to trade bearish in spot and futures market.

The Permian region, which is located in western Texas and eastern New Mexico, accounts for about 63% of total Texas crude oil production and 95% of total New Mexico crude oil production. The report also showed that a tanker-tracking firm estimated Iran's losses in October at 100,000 bpd.

Meanwhile, the earlier bounce in the barrel of WTI was mainly driven by a boost in the risk sentiment, triggered by the optimism over the US-China trade deal and the US oil waivers from Iran sanctions.

The U.S. Energy Information Administration report on crude oil inventories is due to be released on Wednesday at 10:30a.m. EDT.

US light crude was 25 cents down at $65.93.

Last week, hedge funds and money managers cut their bets that oil prices would keep rising to the lowest level in more than a year, according to Reuters market analyst John Kemp.

Brent crude futures were down 79c at $74.25 a barrel by 10.43am GMT, while U.S. futures fell 53c to $64.78 a barrel.

The United States is set to impose new sanctions on Iranian crude from next week and exports from the Islamic Republic have already begun to fall.

Both Russia and the largely-Arab bloc have worked together for two years in order to stem the 2014-2016 decline in prices and more recently, to force them higher. I think that the narrative over the last two months has changed. This is where the market bottomed in August, in June and back in the spring.