Oil prices fell during trading today, Thursday, November 16 (2023), continuing to hemorrhage losses for the second session in a row, amid fears of a decline in demand.
This comes after signs of increased supplies from the United States contributed to concerns about weak energy demand from China. US oil inventories jumped by 17.5 million barrels in the past two weeks (through November 10), bringing the total to 439.4 million barrels.
Yesterday, Wednesday, November 15, oil prices ended their trading with a decline of about 2%, with the release of data revealing a strong increase in US oil inventories.
Oil prices today
By 06:49 AM GMT (09:49 AM Mecca time), benchmark Brent crude futures, for January 2024 delivery, fell 0.37% to $80.88 per barrel.
At the same time, US West Texas Intermediate crude futures, for delivery in December 2023, fell by 0.50%, to $76.28 per barrel, according to figures monitored by the specialized energy platform.
The first-month WTI contract is trading below the second-month price, which indicates that investors expect higher oil prices; The first-month discount for the second month was trading at minus 17 cents on Thursday.
An oil storage site in Japan – Photo from Reuters
Oil price analysis
“Concerns about a record high production rate in the United States have put new pressure on oil prices, adding to the already worrying demand outlook,” said Tina Teng, market analyst at CMC Markets.
US crude inventories rose by 3.6 million barrels last week, to 421.9 million barrels, according to the US Energy Information Administration, which far exceeds analysts’ expectations in a survey it conducted. Reuters An increase of 1.8 million barrels.
US crude production stabilized at a record level of 13.2 million barrels per day.
In Asia, China’s oil refinery production declined in October from the highest levels recorded in the previous month as demand for industrial fuels weakened and refining margins narrowed. However, economic activity rose in October as industrial production increased at a faster pace and exceeded Retail sales growth forecast.
The data, released on Thursday morning, highlighted concerns about China’s real estate sector, showing that new home prices fell for the fourth straight month in October, with property sales by floor area falling by 20.33% year-on-year.
“Technical factors are also restricting any upward movement in oil prices,” said IG market strategist Yip Jun Rong, adding that given that oil supply and demand dynamics have become less prominent in months; There has been some pullback in previous bullish positions.
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2023-11-16 07:14:50
#Oil #prices #declining…and #Brent #crude #Energy
