Brent and WTI crude both fell more than 4% yesterday, to their lowest since late July, due to concerns about cooling supply and demand.
At the end of the trading session on November 7, Brent crude oil prices fell 4.2% to $81.6 a barrel. WTI crude oil prices fell 4.3% to $77.3. Both are the lowest since late July. Brent crude oil also fell below $84 for the first time since the conflict in the Middle East broke out.
Brent prices are still fluctuating around this level. Meanwhile, WTI prices continue to fall, to 77.2 USD per barrel.
"Investors remain on high alert for signs of regional conflict and supply disruptions. But those concerns are slowly easing," said Craig Erlam, an analyst at OANDA.
OPEC crude oil exports are recovering, said Giovanni Staunovo, an analyst at UBS. "OPEC crude oil exports have increased by 1 million barrels a day from the August low, due to weaker demand in the Middle East," Staunovo said. That has eased concerns about supply shortages.
On the demand side, China’s crude oil imports rose in October, but overall imports of goods and services contracted. “The figures suggest that the outlook for China’s economy remains bearish,” said Fiona Cincotta, an analyst at City Index.
US crude inventories rose by 12 million barrels a day last week, according to the American Petroleum Institute. The US Energy Information Administration now expects US crude consumption to fall by 300,000 barrels a day this year, down from its previous forecast of a rise of 100,000 barrels a day.
"There are concerns that oil supplies are increasing and demand is decreasing. The market is no longer tense," said Robert Yawger, an analyst at Mizuho.
Another reason for the decline in oil prices is the strengthening of the US dollar, which makes oil more expensive for holders of other currencies. The market is now waiting for comments from US Federal Reserve Chairman Jerome Powell today and tomorrow for clues on the agency's interest rate policy.
Ha Thu (according to Reuters)
Source link
Comment (0)