Weekly Crude Oil Review: WTI Futures Plunge On Demand Worries

19 Nov 2022 , 02:06 PM

Crude oil dropped on demand concerns. The WTI Crude oil futures tanked under $80 per barrel on sustained selling pressure. The Organization of the Petroleum Exporting Countries (OPEC) cut its 2022 global oil demand growth forecast for a fifth time since April, citing mounting economic challenges including high inflation and rising interest rates. Concerns about the demand outlook in China amid restrictive COVID-19 policy also contributed to putting pressure on prompt month prices, the agency said. Strength in the dollar also weighed down the commodity. The U.S. Energy Information Administration reported an inventory decline of 5.4 million barrels for the week to November 11. This compares with an inventory build of 3.9 million barrels for the previous week. Gasoline inventories added 2.2 million barrels over the week to November 11, with production averaging 9.8 million barrels per day, up slightly on the week. This compared with an inventory draw of 900,000 barrels for the previous week and production of 9.8 million barrels daily. In middle distillates, the EIA estimated an inventory increase of 1.1 million barrels for the week to November 11. This compared with a draw of 500,000 barrels for the previous week.Powered by Commodity Insights