Oil Edges Down as Demand Woes Outweighs Big Draw in Crude Stocks
08.27.2023 By TankTerminals.com - NEWS

August 27, 2023 [Reuters] – Oil prices dipped 1% on Wednesday as demand woes stemming from a build in U.S. gasoline stocks and weak manufacturing data globally outweighed optimism around a larger-than-expected drop in U.S. crude stocks.

 

Brent crude was down 82 cents, or 0.98%, at $83.21 a barrel, bouncing off a 2.5% decline earlier in the session. U.S. West Texas Intermediate crude was down 75 cents, or 0.9%, at $78.89. At the session low it was down 3.4%.

U.S. gasoline stocks climbed 1.5 million barrels last week, compared with analysts estimates for a 888,000 barrel drop.

Meanwhile, U.S. crude inventories (USOILC=ECI) fell by 6.1 million barrels in the week to Aug. 18, the Energy Information Administration said, helped by strong refining activity and high levels of exports. Analysts had expected a 2.8 million-barrel drop.

“The EIA data was a mixed bag,” said John Kilduff, partner at Again Capital.

While refiners continue to run at a high rate and snap up oil inventories, fuel demand hasn’t been very strong due to tough economic conditions, Kilduff added.

Manufacturing data from a host of purchasing managers’ index (PMI) surveys painted a grim picture of the health of economies across the globe.

Japan reported shrinking factory activity for a third straight month in August. Euro zone business activity also declined more than expected, particularly in Germany. Britain’s economy looked looks set to shrink in the current quarter, in danger of falling into recession.

U.S. business activity approached the stagnation point in August, with growth at its weakest since February.

Markets are also looking for hints on the outlook for interest rates when Federal Reserve officials and policymakers from the European Central Bank (ECB), the Bank of England and the Bank of Japan head to Jackson Hole, Wyoming, on Thursday.

Talk has shifted to keeping interest rates around where they are now – but for longer than perhaps previously estimated – rather than raising them further.

On the supply side, Iran’s crude oil output will reach 3.4 million barrels per day (bpd) by the end of September, the country’s oil minister was quoted as saying by state media, even though U.S. sanctions remain in place.

Saudi Arabia will likely roll over a voluntary oil cut of 1 million barrels per day for a third consecutive month into October, five analysts said, amid uncertainty about supplies and as the kingdom targets drawing down global inventories further.

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

ONEOK Reports Marginally Lower First-Quarter Profit on H igher Operating Costs
04.30.2025 - NEWS
April 30, 2025 [Reuters]- U.S. pipeline operator ONEOK on Tuesday reported a marginal fall in fir... Read More
Austria's OMV Expects Gas Production in Neptun Deep Project to Start in 2027
04.30.2025 - NEWS
April 30, 2025 [Reuters]- Austrian oil and gas group OMV  said on Wednesday gas production in t... Read More
PetroChina Q1 Profit Rises, Bucking the Trend of Chinese Oil Majors
04.30.2025 - NEWS
April 30, 2025 [Oil Price]- PetroChina, the largest oil and gas producer in China, reported on ... Read More
CNOOC's Q1 Profit Down 7.9% on Weaker Oil Prices, But Output Grows
04.30.2025 - NEWS
April 30, 2025 [Reuters]- Chinese offshore oil and gas major CNOOC Ltd’s first-quarter net ... Read More