Global crude oil news

14 Dec 2022 , 09:06 AM

Early trade on Wednesday saw a decrease in oil prices as industry data revealed a significant gain in U.S. crude stocks rather than the expected decline. This confirmed concerns about a weaker demand even as supply is becoming more constrained.

U.S. West Texas Intermediate (WTI) crude futures decreased by 30 cents, or 0.4%, to $75.09, reversing a prior session gain of 3%. At $80.30 a barrel, Brent crude futures were down 38 cents, or 0.5%.

According to market sources quoting American Petroleum Institute data who talked to ET, U.S. oil stockpiles increased by around 7.8 million barrels in the week ending December 9 although experts surveyed by Reuters anticipated a 3.6 million barrel decline in stocks.

According to API data, product supplies increased as well, with gasoline inventories rising by around 900,000 barrels and distillate stocks rising by 3.4 million barrels.

Analysts had anticipated a larger increase in gasoline supplies, but the increase in distillate stocks–which include heating oil and jet fuel–was greater than anticipated.

The inventory data defied the bullish optimism that had driven the market higher by 3% in the previous session on expectations of a rebound in Chinese demand as a result of the relaxation of COVID-19 restrictions and on the back of a falling dollar following reports of declining U.S. inflation.

The failure of TC Energy Corp.’s Keystone Pipeline, which transports 620,000 barrels per day of Canadian oil to the United States, has also helped the market this week.

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