Global crude oil news

8 Dec 2022 , 08:49 AM

As U.S. production and gasoline stocks increased at the same time as concerns increased that economic slowdowns would reduce fuel demand, oil prices stabilized in early Asian trade on Thursday after dropping to their lowest level of the year.

While U.S. West Texas Intermediate (WTI) crude futures climbed 69 cents or 1% to $72.70 per barrel, Brent crude futures were up 62 cents or 0.8% at $77.79 per barrel.

Wednesday saw Brent finish below the closing low for the year that was last reached on January 1, 2022, while U.S. West Texas Intermediate crude hit a new low for the year.

The Energy Information Administration reported on Wednesday that U.S. crude output increased to 12.2 million barrels per day last week, its highest level since August.

Even while U.S. oil stockpiles decreased last week, the rise in gasoline and distillate inventories raised concerns about waning demand. The EIA reported that distillate stockpiles, which include diesel and heating oil, increased by 6.2 million barrels while gasoline stocks increased by 5.3 million barrels over the week to reach 219.1 million barrels.

Data indicating that Japan’s economy fell less than initially predicted in the third quarter helped to increase oil prices. Oil prices were stabilized in part as a result of China, one of the world’s largest users of crude oil, easing COVID-19 limitations.

After the G7 and EU implemented further limitations on Russian oil shipments on December 5, Western officials are currently in discussions with their Turkish counterparts to find a solution to the oil tanker backlogs off the coast of Turkey, according to a British Treasury official.

As operators scramble to follow Turkish regulations, at least 20 oil tankers continue to encounter delays as they attempt to transit from Black Sea ports in Russia to the Mediterranean.

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