Oil markets struggle to find footing after 7% slump

Oil prices have lost a fifth of their value over the past month

But several developing factors have pushed prices lower in the past few weeks.

Trump in recent weeks demanded the oil cartel increase production to drive down US gasoline prices.

The IEA said in its monthly report that October output rose by 2.6 million barrels a day to 100.7 million barrels as producers heeded warnings that looming US sanctions could mean a loss of Iranian oil to the market and thus lead to higher prices.

A lift in U.S. sanctions on Iran, increased shale oil production coupled with predictions of reduced world demand for oil has kept prices in trenches.

Before the sanctions, Opec and its allies in a group led by Russian Federation had increased output to make up for any anticipated oil shortage due to the sanctions.

The report notes that "the United States remains committed to reducing Iranian oil exports to zero from the 1.8 million barrels per day seen today".

The rise in USA production is contributing to higher stockpiles.

Meanwhile, global economic growth is under threat from heightened trade tensions, economic instability in some emerging markets and uncertainty over the UK's exit from the European Union.

OPEC is comprised of most of the world's top oil producers, meaning its decisions about production sway the prices of gas across the planet.

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Saudi Energy Minister Khalid al-Falih on Monday had outlined a case for supply restraint, saying OPEC and its allies agreed that analysis showed a need to cut output next year by around 1 million bpd from October levels.

"The market now increasingly looks concerned about the prospect of too much supply", said Norbert Ruecker, head of macro and commodity research at Swiss bank Julius Baer.

The group meets on December 6 to set policy for 2019. The group's strategy is to lower oil inventories to their five-year average.

"Expected total oil demand for the year is anticipated to reach 98.79 mb/d".

The 14-member Opec expects oil supply from its rivals to outpace its own output next year.

"Twelve days in a row is insane - but there are a lot of pieces putting pressure on the market", said Bob Yawger, director of energy futures at Mizuho.

Moreover, financial firms have been hedging the risk incurred by selling put options to oil producers, generating added downward pressure as prices fall toward option strikes, Goldman Sachs said in a note.

"The OECD region will contribute positively to oil demand growth, increasing by 0.25 mb/d y-o-y, while the non-OECD region is assumed to see larger growth by 1.04 mb/d in 2019".

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