Oil prices dropped on Wednesday, November 15 on a bigger-than-expected rise in US crude inventories and record production in the world’s biggest producer, along with mounting worries about demand in Asia. US crude stocks rose by 3.6 million barrels in the latest week to 421.9 million barrels, according to the US Energy Information Administration (EIA).
US domestic crude production stayed at a record 13.2 million barrels per day, the data showed. In an indication of strong demand, US petrol stocks saw a surprise draw of 1.5 million barrels, while diesel stocks drew more than expected at 1.4 million barrels. Brent futures were down 97 cents to $81.47 a barrel. US West Texas Intermediate (WTI) crude was down $1.31 to $76.94, according to news agency Reuters.
Also Read: US October wholesale prices fall to 0.5% in biggest monthly drop since April 2020
Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a November 17 expiry, was last trading lower by 1.43 per cent at ₹6,415 per bbl, having swung between ₹6,393 and ₹6,548 during the session far, against a previous close of ₹6,508 per barrel.
What’s weighing on crude oil prices?
-Top oil exporters Saudi Arabia and Russia said this month they would continue with their additional voluntary oil output cuts of 1.3 million barrels per day until the end of the year.
-Weighing on demand were economic worries in Asia. China’s oil refinery throughput eased in October from the previous month’s highs as industrial fuel demand weakened and refining margins narrowed. Japan’s economy contracted in July-September, snapping two straight quarters of expansion on soft consumption and exports.
-The International Energy Agency joined the Organization of the Petroleum Exporting Countries and its allies (OPEC) in raising oil demand growth forecasts for this year, despite projections of slower economic growth in many major countries.
-Elsewhere, the European Union reached a deal on Wednesday on a law to place methane emissions limits on Europe’s oil and gas imports from 2030, pressuring international suppliers, said Reuters.
Also Read: Russia cuts oil export duty to $24.7 per ton for first time since July on prices: Report
-Russia announced that it will cut the export levy on crude its producers pay for the first time since July following a drop in global oil prices. It will lower the duty to $24.7 a ton next month as the price of the country’s key export blend Urals declined.
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Updated: 15 Nov 2023, 10:28 PM IST