Oil prices, which renewed their multi-year highs on Tuesday, fell after data from the American Petroleum Institute (API), which showed an increase in US inventories for the fifth consecutive week.
According to the API, the country’s trade oil reserves increased by 2.318 million barrels last week after a jump of 3.294 million seven days earlier. The US Department of Energy will publish its official report on the state of energy reserves later on Wednesday. Experts surveyed by S&P Global Platts, on average, expect it to show a drop in oil stocks for the week ended October 22, by 100,000 barrels.
On Wednesday morning, at 9:20 Bulgarian time, December futures for the Brent variety fell on the London Stock Exchange ICE Futures by $ 0.84 to $ 85.56 per barrel. On Tuesday, the price of Brent rose by 0.41 dollars (0.5%) to 86.4 dollars per barrel, the highest level since October 2018.
December futures for the US benchmark WTI are cheaper in e-commerce on the New York Stock Exchange (NYMEX) by $ 0.93 – $ 83.72 per barrel. In the previous session, these contracts rose by $ 0.89 (1.1%) to $ 84.65 per barrel, a maximum of October 13, 2014.
API data also show a drop of 3.73 million barrels in stocks at the Cushing terminal, where NYMEX-traded oil is stored, the lowest level since 2018. The drop in inventories, if confirmed by official data, will be the highest the most significant since January.
“Refineries are using Cushing’s reserves at an incredible rate. The reserves are close to depletion,” said Phil Flynn, an analyst at Price Futures Group.
Reducing reserves will continue to push oil prices, the expert said.
The market is focused on the next OPEC + meeting, which will take place on November 4. However, experts do not expect a change in the growth rate of production, previously agreed by the parties to the agreement to limit production.
“It’s hard to imagine that OPEC + will boost production growth until it senses the threat that non-member countries are starting to regain their share of the oil market,” StoneX financial analyst Craig Turner told MarketWatch. does not feel the same competition from the US shale sector as it did seven years ago, as these companies cannot significantly increase production in a short time, even at an oil price of $ 85 a barrel. “
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