Oil prices dip on expectations of higher crude inventories

LONDON: Oil prices fell on Tuesday on expectations of an increase in US crude inventories, but reports of a fall in Iranian oil exports helped limit losses.
Brent crude was down 80 cents a barrel at $79.98 by 0825 GMT. US light crude was 60 cents lower at $71.18.
US crude stockpiles are expected to have risen last week for the fourth straight week, by about 1.1 million barrels, according to a Reuters poll ahead of reports from the American Petroleum Institute (API) and the US Department of Energy’s Energy Information Administration (EIA).
US oil production has increased steadily over the last five years, reaching a record high of 11.2 million barrels per day in the week to October 5, EIA data showed.
But infrastructure within the biggest US shale producing area, the Permian basin, has not kept pace with rising output, filling domestic tanks.
“Once pipelines and oil terminals are built connecting the Permian to the US Gulf Coast, then there will be big step up in US crude oil exports,” Harry Tchilinguirian, oil strategist at French bank BNP Paribas said.
Balancing the US data were reports that Iranian exports of crude oil are falling faster than expected ahead of new US sanctions on Tehran from November 4.
In the first two weeks of October, Iran exported 1.33 million barrels per day (bpd) of crude to countries including India, China and Turkey, according to Refinitiv Eikon data. That was down from 1.6 million bpd during the same period in September.
Meanwhile, Opec Secretary- General Mohammad Barkindo said on Tuesday that global spare oil capacity was shrinking, adding that producers and companies should increase their production capacities and invest more to meet current demand. — Reuters