Oil prices show mixed results amid falling U.S. inventories, Chinese demand concerns
Date
8/22/2024 8:32:02 AM
(MENAFN) Oil prices showed mixed results yesterday as the market grappled with ongoing worries about Chinese demand and recent declines in U.S. crude and gasoline inventories. brent crude futures saw a slight drop of 11 cents, or 0.1 percent, settling at USD77.09 per barrel, while U.S. West Texas Intermediate (WTI) crude futures decreased by 14 cents, or 0.2 percent, to USD73.03 per barrel. The fluctuations were driven by contrasting factors in the supply-demand balance.
The U.S. energy Information Administration (EIA) reported a decline in crude oil, gasoline, and distillate inventories for the week ending August 16. Crude oil stocks fell by 4.6 million barrels, bringing the total to 426 million barrels, which was more than the anticipated drop of 2.7 million barrels. Additionally, stocks at the Cushing, Oklahoma delivery hub decreased by 560,000 barrels. Refinery runs increased by 222,000 barrels per day, and refinery utilization rates rose by 0.8 percentage points. Gasoline inventories fell by 1.6 million barrels, reaching 220.6 million barrels, surpassing the expected decrease of 0.9 million barrels. Distillate stocks, which include diesel and heating oil, dropped by 3.3 million barrels to 122.8 million barrels, exceeding the anticipated decline of 0.2 million barrels.
The global oil market remains under pressure due to economic challenges in China, the world's largest crude oil importer. Weak refining margins and decreasing fuel demand have led to reduced operations at both state-owned and independent refineries in China. Recent customs data revealed a 7.4 percent decrease in crude oil imports from Russia, China’s top supplier, in July compared to the previous year, while fuel oil imports continued to decline for the third consecutive month. This persistent weakness in Chinese demand contributes to a supply surplus that could potentially lead to lower oil prices in the near future.
MENAFN22082024000045015682ID1108589529
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.