© Reuters.
Investing.com – Data has now been released to record a huge rise of nearly 1 million barrels, while expectations hovered around a rise in the range of 200,000 barrels.
US Energy Administration information data revealed an increase in oil inventories by 1.371 million barrels, compared to expectations of an increase of 239 thousand barrels, while the week before last they recorded a decrease of 4.491 million barrels.
It declined during these moments of today’s trading by 0.7% to 87.5 per barrel.
While Texas crude fell by 1% to $82.8 per barrel.
Prices fell by about 2% on Tuesday, as weak data from the region indicated deteriorating economic conditions in the region, which in turn could hamper demand for oil.
Positive PMI readings from the US were also largely overshadowed by the weak data, while other data also showed that US inventories likely contracted further last week.
Oil price today
Oil losses continued, with Brent losing the levels of $90 per barrel, and Texas crude falling below the level of $85 per barrel. At 17:20 Riyadh time, oil recorded $83.19 per barrel (WTI). While Brent crude recorded $87.69 per barrel. Both contracts were near their lowest levels in two weeks.
US inventories shrink unexpectedly – according to the American Petroleum Institute
Data from API showed that US inventories shrank by more than 2 million barrels in the week ending October 20, exceeding expectations for an increase of 1.6 million barrels.
The reading indicates that steady exports and domestic fuel consumption keep US supplies limited, with demand for fuel remaining strong even after the end of the summer season.
The inventory data preceded strong Purchasing Managers’ Index (PMI) readings, which showed unexpected growth in US activity in October. But the pace of growth remained weak.
However, it benefited from improved data, which also impacted oil prices. The rise in the dollar increases the cost of US crude for international buyers.
European recession fears shake oil markets
Weakness from the euro zone, released on Tuesday, has been a major source of concern for oil markets this week as traders fear that a recession in the region will impact oil demand.
Germany – the region’s largest economy – is already in recession, with Tuesday’s reading showing no signs of improvement.
The weak data came just a few days before, with markets widely expecting the bank to keep interest rates unchanged.
Aside from the ECB, markets were also on edge as a result of next week.
2023-10-25 20:07:37
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