2023-10-04 23:54:21
Editor’s Picks, economic news6:41am.2023-10-05
West Texas crude oil (WTI) contract in New York closed down more than 5% on Wednesday (Oct. 4) following the US revealed that gasoline stocks rose more than expected last week. This indicates sluggish oil demand. Moreover, the market was also pressured by weak US economic data.
The WTI crude oil contract is for delivery in November. fell $5.01 or 5.6% to close at $84.22/barrel. This is the lowest closing level since 31 August 2023. As for the Brent crude oil contract (BRENT), delivered in December. fell $5.11, or 5.6%, to close at $85.81/barrel. This is the lowest closing level since 29 August 2023.
WTI oil futures closed at a five-week low following the US Energy Information Administration (EIA) said gasoline stocks rose 6.5 million barrels last week. That’s just 200,000 barrels more than analysts expected to increase.
However, U.S. crude stocks fell 2.2 million barrels, compared with analysts’ expectations for a drop of just 1.4 million barrels. Stockpiles of distillates, including heating oil and diesel, fell 1.3 million barrels, compared with analysts’ expectations. that it decreased by 1.6 million barrels
In addition, the oil market was also pressured by sluggish economic data from the United States. by S&P Global revealed that The final U.S. services Purchasing Managers’ Index (PMI) fell to 50.1 in September, lower than the preliminary reading of 50.2 from 50.5 in August, with the PMI nearing the 50 level. Below this level would indicate contraction in the US services sector.
For the meeting of the Joint Ministerial Monitoring Committee (JMMC) of the Organization of the Petroleum Exporting Countries (OPEC) and allied nations. or OPEC Plus, yesterday the meeting resolved to maintain the OPEC Plus production policy as reached in the agreement in June. As a result, OPEC+ will reduce production by a total of 3.66 million barrels/day until the end of 2024.
JMMC also voted to support Saudi Arabia in extending its voluntary oil production cut of 1 million barrels per day until the end of this year. Including Russia’s extension of reducing oil exports by 300,000 barrels/day until the end of this year as well.
The JMMC Board will hold its next meeting on 26 Nov.
By InfoQuest News Agency (05 Oct. ’23)
Tags: WTI, WTI oil, oil price
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