Oil Dips Ahead of OPEC+ Meeting, Rising U.S Crude Inventories
Oil prices were down mid-week ahead of the Organisation of Petroleum Exporting Countries and allies meeting on Thursday amidst rising crude inventories in the United States. Both development signal a weak demand outlook.
International benchmark Brent crude was trading at $83.69 per barrel, dropped 1.21% after closing the previous session at $84.72 a barrel.
Also, the American benchmark West Texas Intermediate (WTI) was at $82.58 per barrel at the same time for a 1.58% drop after it ended the previous session at $83.91 a barrel.
Prices decline due to uncertainties around the OPEC+ meeting on Thursday while inventories of commercial crude increased more than expected last week.
U.S stockpiles rise after recovering the week before, government data showed Wednesday. According to data, oil stockpiles rose 3.3 million barrels to 434.1 million barrels, the Energy Information Administration said.
Supplies were about 6% lower than the five-year average for this time of year, the report noted. Analysts had expected an increase of 2.2 million barrels, according to Investing.com. A week earlier, inventories climbed by 4.3 million barrels.
West Texas Intermediate crude futures dropped more than 3% to $81.28 a barrel while Brent fell about 3% to $82.38 a barrel in afternoon trading.
The EIA said gasoline supplies slid 1.5 million barrels, about 3% below the five-year average. A week earlier, gas stockpiles fell by 2 million barrels. Distillate fuel inventories increased by 2.2 million barrels, about 5% below their five-year average, compared with a decrease of 400,000 barrels a week earlier.
Crude oil imports fell 83,000 barrels per day last week to an average of 6.2 million barrels. Imports averaged about 6.1 million barrels a day over the past four weeks, nearly 15% above the prior-year print.
Gasoline production was 10.2 million barrels, up from 10.1 million barrels a week earlier, while distillate output was 4.8 million barrels, up from 4.6 million barrels a week earlier.
Today, the Nigerian Qua Iboe crude was offered at higher levels on Wednesday, while more than a dozen Angolan cargoes were said to be still looking for buyers.
Offers of Nigerian Qua Iboe crude are being made at dated Brent plus $1.70, higher levels heard on Tuesday, as the force majeure declared on the similar Bonny Light crude stream has lent support to the market.
An ample number of Angolan cargoes are available, following state oil firm Sonangol sale of a Girassol cargo reported on Tuesday.
Speaking at a press conference at the United Nations Climate Change Conference (COP26) in Glasgow, Scotland, US President Joe Biden signalled out Russia and oil-producing nations for the rise in gasoline prices. Read Also: Oil Dips as U.S Seeks to Tackle Tight Energy Condition
‘That is a consequence of thus far the refusal of Russia or the OPEC nations to pump more oil,’ Biden said. #Oil Dips Ahead of OPEC+ Meeting, Rising U.S Crude Inventories
