Oil Prices Edge Lower over Demand, Supply Imbalance
Oil prices fell Thursday as expectations grew that the Organization of the Petroleum Exporting Countries (OPEC) and its allies could agree to raise output at their meeting this weekend, while a surprise build in US crude inventories added to concerns about oversupply.
Brent crude was trading at $66.75 per barrel, 0.8% lower from the previous close of $67.27. US benchmark West Texas Intermediate (WTI) fell 0.8% to $63.02 from $63.54 in the prior session. Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman will meet Sunday to review October production plans.
The group raised output by 547,000 barrels a day in September from August, and expectations of further increases in October have fueled oversupply concerns, pressuring prices lower.
US inventory data showing rising stockpiles in the world’s biggest oil consumer also added to the downward pressure on prices.
The American Petroleum Institute reported late Tuesday that US crude inventories rose by 622,000 barrels last week, compared with expectations for a 3.4-million-barrel draw.
The build signaled weakening demand in the world’s top oil consumer and added to pressure on prices. The US Energy Information Administration is due to release official inventory data later on Thursday. Traders also kept an eye on diplomatic efforts to end the Russia-Ukraine war.
US President Donald Trump has reaffirmed his commitment to pursuing a peace agreement between Russia and Ukraine despite the uncertainties over a potential face-to-face meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy.
Speaking Wednesday, Trump characterized his position as both realistic and optimistic, and said he is closely monitoring how both leaders are handling this crossroads in the negotiations, according to CBS News.
“I’ve been watching it, I’ve been seeing it, and I’ve been talking about it with President Putin and President Zelenskyy,” Trump said in a phone interview with CBS. “Something is going to happen, but they are not ready yet. But something is going to happen. We are going to get it done,” he said.
Peace efforts have eased supply concerns, keeping pressure on prices. Trump also said Wednesday that he will soon “find out” just how good his relationships are with the leaders of China, India and Russia after the leaders attended a key ceremony.
The US President said a ceremony hosted by China to commemorate the 80th anniversary of the end of World War II, attended by Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, was “beautiful” and “very, very impressive,” but suggested the US was intentionally slighted.
“I understood the reason they were doing it, and they were hoping I was watching, and I was watching. My relationship with all of them is very good,” he told reporters as he hosted Polish President Karol Nawrocki. #Oil Prices Edge Lower over Demand, Supply Imbalance#
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