WTI and Brent oil hit lowest prices since mid-July
Last week’s U.S. crude oil inventory increased by about 12 million barrels
Market worries rise due to China’s poor export performance in October
Barclays lowers Brent oil forecast for next year to $93
International oil prices have hit a three-month low due to concerns about decreasing demand in the U.S. and China.
On November 8th (local time), West Texas Intermediate (WTI) for December delivery closed at $75.33 per barrel on the New York Mercantile Exchange (NYMEX), down $2.04 (2.64%) from the previous trading day. Brent crude for January delivery was recorded at $79.84 per barrel on the London ICE Futures Exchange, a decrease of $1.77 (2.17%).
Both WTI and Brent oil prices were the lowest since mid-July.
Warren Patterson, a strategist at ING, said, “The market is less worried about potential supply disruptions in the Middle East. Investors are focusing on the slowdown in demand.”
According to the American Petroleum Institute, U.S. crude oil inventories increased by about 12 million barrels last week, the largest increase since February. The U.S. Energy Information Administration (EIA)’s weekly crude oil inventory data, initially scheduled for release on the 9th, has been postponed to the 15th for system upgrades.
In its monthly report, the EIA stated that this year’s oil consumption is expected to decrease by 300,000 barrels per day. Previously, it was expected to increase by 100,000 barrels per day.
China, the world’s largest oil importer, underperformed in October exports, exacerbating market concerns about oil demand forecasts.
Phil Flynn, an analyst at Price Futures, explained to Reuters, “The oil price crash reflects concerns that the global economy, based on Chinese economic indicators, will hit a wall and the belief that the war between Israel and the Palestinian militant group Hamas will not affect oil supply.”
Analysts at Goldman Sachs estimated that the net sea oil exports of six OPEC countries will be limited to an average of 600,000 barrels per day, lower than in April. OPEC stated that the cumulative reduction since April has reached 2 million barrels.
Global investment bank Barclays has lowered its Brent oil price forecast for next year by $4 to $93.
By. Jeon Ah Hyun
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