- Oil prices fell on Thursday as traders offloaded more US inventories and reduced demand in China.
- The EIA said on Wednesday that US crude oil inventories rose by 3.6 million barrels last week.
- Meanwhile, China’s oil refineries saw a decline in output, raising concerns about falling fuel demand.
Oil prices fell on Thursday due to a recent increase in US crude inventories and concerns that demand in China would continue to soften.
International benchmark Brent crude slipped 3.7% to $78.15 a barrel. Meanwhile, West Texas Intermediate crude fell 4.1% to $73.50 a barrel.
On Wednesday, the Energy Information Administration said U.S. crude inventories rose by 3.6 million barrels last week, nearly double the 1.8 million barrel increase expected in a Reuters analyst survey.
Meanwhile, U.S. oil production remains at a record 13.2 million barrels per day, the EIA said.
Amidst many economic problems, the markets are also worried about the outlook for China’s crude oil demand. The country’s refining output fell 2.8% in October to just 15.1 million barrels per day, according to China’s National Bureau of Statistics.
The recent decline in oil prices is a reversal of the surge that occurred in late summer, when Saudi Arabia and Russia vowed to cut their crude output by the end of the year.
OPEC+ leaders have been attempting to prop up crude oil prices for months, with Saudi Arabia’s energy chief recently condemning speculators in the energy market who can artificially drive down crude prices.
Still, some Wall Street forecasters remain optimistic about oil prices in 2024, citing a long-running trend of underinvestment in the industry that will make it difficult to boost supply in the future.
According to Goldman Sachs, crude oil and other commodities are likely to head towards a “supercycle”, which would see Brent prices reach $100 a barrel in 2024.