Oil prices decline as US inventories rise

by times news cr

2023-11-15T19:43:22+00:00

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/ Oil prices fell during trading on Wednesday evening, with US crude oil inventories rising more than expected, and production reaching a record high in the United States, the largest oil producer in the world.

By 1635 GMT, Brent crude futures fell 97 cents to $81.47 a barrel, while US West Texas Intermediate crude fell $1.31 to $76.94.

The US Energy Information Administration said on Wednesday that crude oil inventories in the United States rose by 3.6 million barrels last week to 421.9 million, far exceeding the expectations of analysts polled by Reuters, who estimated the expected increase at 1.8 million barrels.

The data showed that US domestic crude production remained at a record high of 13.2 million barrels per day.

The International Energy Agency joined the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in raising oil demand growth expectations for this year, despite expectations of a slowdown in economic growth in many major countries.

Amrita Sen, co-founder and chief oil analyst at Energy Aspects, said on Wednesday that Saudi Arabia, the world’s largest oil exporter, is expected to extend additional voluntary supply cuts until at least the first quarter and perhaps the first half of 2024, according to Reuters.

The Financial Times reported today that Denmark will be tasked with inspecting and possibly preventing Russian oil tankers from sailing through its waters under new European Union plans, as the West explores more ways to impose a price cap on Moscow crude.

However, how Denmark implements this remains to be seen.

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