Crude Oil Tanks Nearly 4% as US Output Overshadows OPEC
12.08.2023 By Tank Terminals - NEWS

December 8, 2023 [Oil Price]- Prices of Brent crude and West Texas Intermediate were down nearly 4% on Wednesday as an unexpected and significant increase in U.S. gasoline inventories added to concerns about lagging demand.

 

Wednesday’s prices reflect the lowest levels of crude oil since June this year, shuffling between a 3.5 and 4% loss throughout the first part of the day.

At 1:34 p.m. ET on Wednesday, Brent crude was trading $74.64, down 3.32%, for a $2.56 loss on the day. WTI was trading at $69.71, down 3.61%, for a $2.61 loss on the day.

U.S. benchmark oil prices are down nearly 20% in the fourth quarter, to below $75 a barrel.

Total gasoline stocks from the Energy Information Administration (EIA) for the week ended November 24 were at 218.2 million barrels, compared to 213.8 million barrels for the same time period last year.

“There is demand destruction coming in from the fuel side. The market is more demand focused than supply focused right now,” Dennis Kissler, senior vice president of trading at BOK Financial, told Reuters on Wednesday.

Record U.S. oil production has been vying with OPEC+ for market price influence. The most recent manifestation of this was the OPEC+ meeting on November 30, during which a voluntary cut of 2.2 million barrels per day was announced. That announcement failed to push oil prices upwards, and the focus remains on U.S. production.

The Saudi Energy Minister on Monday criticized speculators after prices continued to drop for failing to understand the OPEC+ output cut deal. Last week, the EIA reported that U.S. average daily production for September remained unchanged from its record-high rate in August of 13.24 million barrels, despite cost inflation and lower international oil prices. At the same time, American shale producers have no intention of letting up on the drill bit.

Additionally, weak economic data coming out of China continues to suggest weak demand, weighing on crude prices.

 

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

India's First Methanol Plant to be Set up in Telangana
11.21.2024 - NEWS
November 21, 2024 [Chem Analyst]- In a groundbreaking initiative, India is set to get its first m... Read More
Egypt in Talks with Foreign Companies Over Long-Term LNG Purchases, Sources Say
11.21.2024 - NEWS
November 21, 2024 [Reuters]- Egypt is in talks with U.S. and other foreign companies to purchase ... Read More
INEOS and GNFC Sign a Memorandum of Understanding to Build a New World Scale Acetic Acid Unit in India
11.21.2024 - NEWS
November 21, 2024 [INEOS]- INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals L... Read More
Peru's State Oil Firm Could Open to Private Investors in 2025, Chairman says
11.21.2024 - NEWS
November 21, 2024 [Reuters]- Peru’s indebted state-run oil firm could consider offering a ... Read More