oil inventories decrease more than expected (-3.7 million barrels)

Commercial crude oil reserves contracted more than expected last week in the United States, according to figures released Wednesday by the US Energy Information Agency (EIA).

During the week ended November 18, these commercial stocks fell by 3.7 million barrels, more than the drop of 2.6 million expected by analysts, according to a consensus established by the Bloomberg agency. Commercial reserves are about 5% below their average level for the past five years at this time, according to the EIA.

Added to this decrease is the 1.6 million barrel drop in strategic reserves, the lowest since March 1984. gasoline, almost triple what was anticipated by the operators (1.1 million).

Another downside is the erosion of demand for refined products (-5.7% over one week), which is 8.7% below its level for the same period last year. On average over four weeks, the indicator most scrutinized by traders, the demand for gasoline, fell by 6.9% over one year. This slowdown in demand has shaken up the market, which was already clearly on the downside. Around 3:50 p.m. GMT, a barrel of American West Texas Intermediate (WTI) for delivery in January dropped 4.55%, to 77.26 dollars. As for the barrel of Brent from the North Sea, also with maturity in January, it yielded 4.28%, to 84.57 dollars.

During the past week, US production remained unchanged at 12.1 million barrels per day.

SEE ALSO –Joe Biden calls on oil majors to ‘stop profiting from war’


Leave a Comment

Your email address will not be published. Required fields are marked *