Oil prices fell during trading today, Thursday, November 16 (2023), amid fears of a slowdown in demand, continuing hemorrhagic losses for the second consecutive session.
It comes after signs of increased supplies from the US contributed to concerns about China’s weak energy demand. US oil inventories rose by 17.5 million barrels in the past two weeks (to November 10), bringing the total to 439.4 million barrels.
Yesterday, Wednesday, November 15, oil prices ended trading down about 2% after the release of data revealed a strong increase in US oil inventories.
Oil price today
By 06:49 AM GMT (09:49 AM Mecca Time), benchmark Brent crude futures for January 2024 delivery were down 0.37% at $80.88 a barrel.
At the same time, US West Texas Intermediate crude futures for delivery in December 2023 fell 0.50% to $76.28 a barrel, according to figures tracked by the Specialized Energy Site.
The first-month WTI contract is trading below the second-month price, indicating that investors are expecting higher oil prices; The first-month discount for the second month traded at minus 17 cents on Thursday.
Oil price analysis
“Concerns about higher production rates in the U.S. have put new pressure on oil prices, adding to an already worrisome demand outlook,” said Tina Deng, market analyst at CMC Markets.
According to the US Energy Information Administration, US crude oil inventories rose by 3.6 million barrels last week to 421.9 million barrels, exceeding analysts’ expectations. Reuters An increase of 1.8 million barrels.
U.S. crude production held steady at a record 13.2 million barrels per day.
In Asia, China’s oil refining output fell in October from a record high in the previous month as demand for industrial fuels weakened and refining margins narrowed. However, economic activity picked up in October as industrial output rose faster and outpaced retail sales growth. forecast.
Data released Thursday morning underscored concerns about China’s real estate sector, with new home prices falling for a fourth consecutive month in October and property sales falling 20.33% year-on-year.
“Technical factors also limit any upward movement in oil prices,” said Yip Jun Rong, IG market strategist, adding that oil supply and demand dynamics have been less important in months; There are some pullbacks from previous bullish positions.
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