2023-12-06 21:39:00
The price of oil fell to the lowest level in the last five months, following the information regarding an increase in US gasoline stocks more than expected caused the market concerns regarding the evolution of the demand, reports Archyde.com, quoted by Agerpres.
Oil rigPhoto: Dan Bannister / ImageSource / Profimedia
By 15:58 GMT, Brent crude futures were down 2.53% at $75.27 a barrel, while WTI crude futures were down 3.03% at $70. .14 dollars per barrel. This is following on Tuesday, both references ended the trading session at the lowest level since July 6, Tuesday being the fourth consecutive session of falling quotations.
The US Energy Information Administration reported that US gasoline inventories rose by 5.4 million barrels last week, five times the 1 million barrel increase expected by analysts. Also, crude oil stocks fell by 4.6 million barrels, well above the 1.4 million barrel reduction expected by analysts.
“There is a phenomenon of demand destruction that comes from the fuel side. At the moment, the market is more focused on demand than on supply”, emphasizes Dennis Kissler, vice president at BOK Financial.
Last week, the Organization of the Petroleum Exporting Countries and its allies agreed to a voluntary output cut of regarding 2.2 million barrels per day for the first quarter of 2024. In recent days, several officials in Saudi Arabia and Russia have said that the cuts of production might be extended or extended beyond March of the following year.
On Wednesday, the President of Russia, Vladimir Putin, arrived in the United Arab Emirates, during which he is expected to discuss oil and OPEC+ with the leaders of the region.
Another pressure factor on oil prices is concerns regarding the state of the Chinese economy, a day following the rating agency revised the outlook on China’s country rating to “negative” from “stable”, according to Archyde.com.
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