By Neanda Salvaterra 
   -- Oil prices dropped after President Trump urged Saudi Arabia and OPEC not 
      to cut oil production, even as traders fear the market is oversupplied. 
 
   --  Brent, the global oil benchmark, was down 4.1%, at $67.22 a barrel on 
      London's Intercontinental Exchange. 
 
   -- West Texas Intermediate futures, the U.S. oil standard, were down 4.4% at 
      $57.29 a barrel on the New York Mercantile Exchange, having hit a near 
      11-month low earlier. 

HIGHLIGHTS:

Oil has continued to fall into bear-market territory, driven by oversupply fears after Washington decided to soften its sanctions on Iran and grant waivers to some buyers of Tehran's crude, just as other major producers were ramping up production.

OPEC and Russian crude production continued to climb in October, more than offsetting losses from Iran, where U.S. sanctions have curbed output, the oil cartel said Tuesday in its monthly report. Crude production from members of the Organization of the Petroleum Exporting Countries rose by 127,000 barrels a day in October, to average 32.9 million barrels a day, while Russia's production rose 50,000 barrels a day. In Iran, production fell by 156,000 barrels a day.

INSIGHT:

The gloom in the oil market is partly because Saudi Arabia's efforts to prop up the market aren't enough, say analysts at JBC Energy. The kingdom said its exports would come in at 0.5 million barrels a day lower on the month in December.

Saudi officials said major producers should look at shaving off 1 million barrels a day of supply in 2019, but hesitant statements from Russia made traders nervous.

"Our total liquids balance for next year currently implies length of around 1.25 million barrels a day, so even adjusted for the 1 million barrels a day that OPEC is talking about we would still be left with some oversupply," said JBC analysts.

AHEAD:

   -- The U.S. Energy Information Administration will publish an estimate of 
      U.S. shale oil output Tuesday. "It is likely to reach a new record level 
      in December and thus add to the oversupply. U.S. producers are not likely 
      to have been best pleased by Trump's tweet yesterday," said analysts for 
      Commerzbank in a note. 
 
   -- The American Petroleum Institute, an industry group, releases weekly data 
      Wednesday on U.S. oil inventories. 
 
   -- The International Energy Agency releases its monthly oil market report on 
      Wednesday. 

Dan Molinski contributed to this article.

Write to Neanda Salvaterra at neanda.salvaterra@wsj.com

(END) Dow Jones Newswires

November 13, 2018 11:15 ET (16:15 GMT)