The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, USA, November 22, 2019. Picture taken November 22, 2019. Portal/Angus Mordant/File Photo Acquire License Rights
- API shows big rise in US crude oil inventories – sources
- OPEC export estimates remain high -Goldman Sachs
- China’s exports extend declines
Nov 8 (Portal) – Oil prices faltered on Wednesday after falling to their lowest in over three months in the previous session, weighed down by worries about slowing demand in the world’s top oil consumers, the United States and China .
Brent crude futures edged up 4 cents to $81.65 a barrel by 0333 GMT, while U.S. crude futures fell 14 cents to $77.24 a barrel. Both fell to their lowest levels since July 24 on Tuesday.
“The market is clearly less concerned about the possibility of supply disruptions in the Middle East and is instead focused on easing the balance,” ING Bank analysts Warren Patterson and Ewa Manthey said in a note to clients. They pointed to an easing of tight oil supply conditions.
U.S. crude oil inventories rose by nearly 12 million barrels last week, market sources said late Tuesday, citing figures from the American Petroleum Institute.
The US Energy Information Administration (EIA) will delay the release of weekly inventory data until the week of November 13th.
Crude oil production in the United States will rise slightly less this year than previously expected, while demand will decline, the EIA said on Tuesday.
The EIA now expects total oil consumption in the country to fall by 300,000 bpd this year, reversing its previous forecast of a 100,000 bpd increase.
The agency also forecast that Venezuela’s crude oil production will rise by less than 200,000 barrels per day (bpd) to an average of 900,000 bpd by the end of 2024 due to the easing of US sanctions.
Analysts at Goldman Sachs further tempered concerns over supply constraints by estimating that net seaborne oil exports from six OPEC countries that have announced cumulative production cuts worth 2 million barrels per day (bpd) since April 2023 remain at just 0, 6 million bpd below April levels.
Data from China, the world’s largest importer of crude oil, also raised doubts about the demand outlook.
Crude oil imports in the world’s second-largest economy showed robust growth in October, but overall exports of goods and services contracted faster than expected, adding to fears of weaker global energy demand.
Further adding to the pressure on oil prices was a slight rebound in the U.S. dollar (.DXY) from recent lows, making oil more expensive for holders of other currencies.
On the positive side, oil producer OPEC expects the global economy to grow and boost fuel demand despite economic challenges, including high inflation and interest rates.
Reporting by Stephanie Kelly and Muyu Xu. Edited by Shri Navaratnam
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