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The sun casts a silhouette behind a primitive oil pump jack in the Permian Basin, highlighting the sprawling landscape of Loving County, Texas. The picture was captured on November 22, 2019. REUTERS/Angus Mordant/File Photo
API data reveals a significant surge in U.S. crude reserves, while OPEC export projections hold steady despite concerns over demand. Concurrently, China’s exports continue to trend downwards.
Oil prices experienced a brief pause on Wednesday following a downtrend to their lowest point in over three months. This decline is attributed to apprehensions over diminished demand from major consumers, such as the United States and China.
Brent crude futures inched up marginally by 4 cents, reaching $81.65 a barrel, while U.S. crude futures decreased by 14 cents to $77.24 a barrel, marking the lowest point since July 24.
Market analysts from ING bank suggest that the market is displaying less anxiety regarding potential Middle Eastern supply disruptions, instead shifting focus to an easing in supply conditions.
Reports indicate a nearly 12 million barrel increase in U.S. crude oil stocks in the preceding week, as per the American Petroleum Institute. The U.S. Energy Information Administration will postpone weekly inventory data release until the week of Nov. 13.
Furthermore, the EIA revised its projections for U.S. crude oil production and demand, expecting a decrease in consumption by 300,000 bpd this year.
In addition, Goldman Sachs analysts estimated that net oil exports by OPEC nations have only experienced a modest decline despite cumulative production cuts worth 2 million barrels-per-day (bpd) since April 2023.
Data from China, the world’s leading crude oil importer, raised concerns about global energy demand as its total exports exhibited contraction beyond expectations.
A modest resurgence in the U.S. dollar also exerted pressure on oil prices, while OPEC remains optimistic, anticipating global economic growth to drive fuel demand despite existing economic challenges.
For more information, please contact our New York-based correspondent covering the U.S. crude market at 646-737-4649.
