Oil Prices Decline over Weak U.S. Demand Outlook
In the global commodity market, prices of crude oil declined further on Wednesday after industry data pointed to weakening demand in the US, the world’s largest oil consumer.
International benchmark Brent crude was trading at $64.30 per barrel, down 0.4% from the previous close of $64.58. US benchmark West Texas Intermediate (WTI) also decreased by about 0.4% to $60.45, compared to $60.68 in the prior session.
The downturn followed figures from the American Petroleum Institute (API), which showed US commercial crude inventories rising by 4.4 million barrels last week. Gasoline stocks climbed 1.55 million barrels, while distillate inventories increased by 577,000 barrels over the same period.
The US Energy Information Administration (EIA) will release official data later in the day.
Despite swelling inventories, traders remain focused on supply-side risks, particularly those linked to Russia. Under US sanctions targeting major Russian producers Rosneft and Lukoil, global companies must sever business ties with the two firms by Nov. 21.
The US Treasury Department said the sanctions are already squeezing Russia’s oil revenues and are expected to curb its export volumes over time, prompting some Chinese and Indian buyers to seek alternative suppliers.
At the same time, analysts warn that global oil output continues to exceed demand — a factor that is also weighing on prices.
Meanwhile, diesel refining margins in Europe have surged to their highest level since September 2023 following Ukrainian strikes on Russian energy and port infrastructure that disrupted fuel flows. The spike reflects a broader upswing in refinery profitability worldwide. Dangote Cement Plunges as Investors Trim Shareholding
