Prices quickly came under pressure when China, the world’s biggest crude importer, released figures showing September imports fell 15% from a year earlier.
see photosUS petrol and diesel futures on Wednesday closed at their highest level since October 2014.
Oil prices edged lower on Wednesday on concerns of slowing crude demand, which ate away recent gains that had driven prices to multi-year highs in recent sessions. Analysts noted that some traders took profits in US crude after West Texas Intermediate (WTI) futures hit their highest level since October 2014 during the past three sessions. Brent futures fell 24 cents, or 0.3%, to $83.18 a barrel, while US West Texas Intermediate (WTI) crude fell 20 cents, or 0.3%, to $80.44.
Prices quickly came under pressure when China, the world’s biggest crude importer, released figures showing September imports fell 15% from a year earlier.
The market is awaiting US oil inventory data, which analysts expect to show a 0.7 million barrel build in crude stocks.
Data from the American Petroleum Institute, an industry group, is due Wednesday at 4:30 p.m. EDT (2030 GMT) and Thursday from the U.S. Energy Information Administration. The data was delayed by a day after the Columbus Day holiday on Monday.
OPEC cut its world oil demand growth forecast for 2021 while maintaining its 2022 outlook.
Shortages of coal and natural gas in China, Europe and India have driven up the prices of the fuel burned for electricity generation. Oil products are being used as an alternative.
The European Commission outlined measures the EU could use to tackle rising energy prices, and said it would explore joint gas purchases between countries.
The Organization of the Petroleum Exporting Countries (OPEC) has cut world oil demand growth forecast for 2021 while maintaining its 2022 outlook.
But OPEC said a rise in natural gas prices could increase demand for oil products as end users switch.
“Today’s monthly OPEC report offered something for both bulls and bears, with the agency unexpectedly lowering its global oil demand forecast … Ritterbus & Associates in Galena, Illinois.
Global markets should not expect more oil from Iran in the near future. The US said it was ready to consider “all options” if Iran was unwilling to return to the 2015 nuclear deal.
In Russia, President Vladimir Putin said oil prices could reach $100 a barrel and noted Moscow is ready to provide more natural gas to Europe if requested.
Energy markets are focused on how supply constraints will affect oil demand, especially in China, the world’s second-largest economy.
India is the third largest oil importer in the world.
“These are troubled times for China. The country is facing a serious energy crisis,” said Stephen Brennock of broker PVM.
In India, which is facing the worst power shortage due to coal shortage since 2016, September saw a rise in fuel consumption as economic activity picked up. India is the third largest oil importer in the world.
In the United States, the government has forecast that consumers will spend more to heat their homes this winter than last year due to rising energy prices.
The White House is in talks with US oil and gas producers about helping them reduce rising fuel costs.
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US petrol and diesel futures on Wednesday closed at their highest level since October 2014.
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