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Oil prices fall… Brent crude oil is below $90

Date:

During trading today, Thursday, October 26 (2023), oil prices fell after a rise in US crude oil inventories and a rise in the dollar index. Middle East.

The weekly report released by the US Energy Information Administration on Wednesday showed US crude oil inventories rose by 1.4 million barrels in the week ended October 20, while distillate stocks – which include diesel, heating fuel and others – fell by 1.7 million. Barrels..

Oil prices ended their trade yesterday, Wednesday, October 25, with a gain of more than 2% on the release of US inventory data, recouping losses extended over the previous three sessions.

Oil price today

By 06:25 AM GMT (09:25 AM Mecca Time), Brent crude oil futures – for December 2023 delivery – fell 0.59% to $89.60 a barrel.

At the same time, US West Texas Intermediate crude futures – for December 2023 delivery – fell 0.67% to $84.82 a barrel, according to figures seen by the specialist energy site.

Oil prices rose in Wednesday’s trading after 3 sessions, amid fears that the scope of the war in Gaza could widen. It threatened to disrupt Middle East supplies, but was dismissed after the Wall Street Journal reported that Israel had agreed to postpone an expected ground invasion of Gaza.

Oil prices have seen significant volatility since the outbreak of fighting in the Gaza Strip on October 7, amid fears it could spread to the Middle East and disrupt supplies in one of the world’s biggest producers.

A platform in an oil field in Texas, USA – Photo from Reuters

Oil price analysis

“Oil market movements are primarily related to the war in the Gaza Strip,” said CMC market analyst Tina Deng, who added that investors were absorbing the increase in US crude inventories, indicating weaker demand. Reuters.

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“Markets remain volatile with ebbs and flows in the Middle East, but underlying fundamentals are seasonally weaker than expected, with US manufacturing demand surprisingly weak,” Citi analysts said Thursday.

Energy Information Administration data showed U.S. crude refinery flows fell by 207,000 barrels per day, while the refinery flow rate fell 0.5 percentage points to 85.6% of total capacity.

Macroeconomic concerns continue to weigh on the outlook for oil demand, with business activity data in the eurozone seeing a surprise decline this month.

The dollar index also rose slightly on Thursday, helping to put pressure on oil prices. A strong dollar weakens oil demand; Because it makes the commodity more expensive for holders of other currencies.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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