- Crude Oil prices weakened on weekly build in US crude stockpiles.
- EIA Crude Oil Stocks Change improved to 3.6M from 0.774M prior.
- China’s oil refinery experienced a slight slowdown, impacting Oil prices.
Western Texas Intermediate (WTI) trades lower near $76.20 per barrel during the Asian session on Thursday, extending the losses for the third successive day. The Crude oil prices face downward pressure due to a larger-than-expected weekly build in US crude stockpiles. EIA Crude Oil Stocks Change for the week ending on Nov 10, improved to 3.6M from 0.774M prior against the 1.793M as expected.
Additionally, the signs of easing demand in China are indeed influencing the negative sentiment surrounding Oil prices. China’s oil refinery throughput in October experienced a slight slowdown from the previous month’s highs. The data from the National Bureau of Statistics (NBS) indicates that China’s total refinery throughput, although still substantial at 15.05 million barrels per day (bpd), reflects a modest decline compared to September’s record of 15.48 million bpd.
Crude oil prices have experienced losses for the fourth consecutive week, with investors factoring in a reduced risk premium related to the Israel-Hamas conflict. Moreover, the uncertainty surrounding US Federal Reserve (Fed) interest rates has added to the pressure on Oil markets. The Fed’s caution that it could potentially raise rates further this year, despite recent data indicating a decline in inflation, has introduced an element of uncertainty.
The decision by the US to enforce oil sanctions on Iran, reducing Iranian oil exports. President Joe Biden’s energy security adviser, Amos Hochstein, conveyed that the enforcement of these sanctions is expected to result in a reduction of more than 1 million bpd of oil exports from Iran. It’s noteworthy that this decision is being implemented even as Oil prices continue to experience a downward trend.