Oil Prices Rise Slightly After Previous Drop
Date: 2023-11-09 Author: Dima Zakharov Categories: ECONOMY
The price of January futures for Brent crude oil on the ICE Futures exchange in London stands at $79.64 per barrel, which is $0.1 (0.13%) higher than the previous session's closing price. On Wednesday, the price of these contracts fell by $2.07 (2.5%) to $79.54 per barrel, the lowest since July 19. WTI crude oil futures for December on the New York Mercantile Exchange (NYMEX) rose by $0.09 (0.12%) to $75.42 per barrel. In the previous trading session, the price of these contracts decreased by $2.04 (2.6%) to $75.33 per barrel, the lowest level since July 17.
Negative news for the market came from the American Petroleum Institute (API), which reported a sharp increase in U.S. oil inventories last week. According to API estimates, oil inventories increased by 11.9 million barrels, the highest since the first week of 2023.
Official data on U.S. energy inventories for this week will not be released as the country's Ministry of Energy has postponed the release of this information due to planned system upgrades. The next inventory report in the United States will be published on November 15.
The oil market "took a hit" on Wednesday due to concerns about demand prospects, exacerbated by the release of API data showing a sharp increase in U.S. inventories, says FXTM analyst Lukman Otunuga, as quoted by Market Watch.
"A sharp increase in inventories could result from various factors, and demand fluctuations are just one of them," the expert says. "However, the API's estimates have heightened concerns specifically about demand prospects."
Negative news for the market came from the American Petroleum Institute (API), which reported a sharp increase in U.S. oil inventories last week. According to API estimates, oil inventories increased by 11.9 million barrels, the highest since the first week of 2023.
Official data on U.S. energy inventories for this week will not be released as the country's Ministry of Energy has postponed the release of this information due to planned system upgrades. The next inventory report in the United States will be published on November 15.
The oil market "took a hit" on Wednesday due to concerns about demand prospects, exacerbated by the release of API data showing a sharp increase in U.S. inventories, says FXTM analyst Lukman Otunuga, as quoted by Market Watch.
"A sharp increase in inventories could result from various factors, and demand fluctuations are just one of them," the expert says. "However, the API's estimates have heightened concerns specifically about demand prospects."
