Investing.com – International oil prices consolidated sideways on Thursday (9th), hitting a four-month low earlier, with Brent crude oil falling below $80. The market was worried about a slowdown in global crude oil demand, especially in several Major economies are sending signs of weakness.
Data from the American Petroleum Institute (API) showed that U.S. crude oil inventories rose by more than 11 million barrels in the week ended November 3, the largest weekly increase since February. The data also showed that U.S. fuel consumption has cooled.
At the same time, the market is also worried that high interest rates will lead to further cooling of economic growth, especially after Federal Reserve members issued a series of tough signals, and the dollar rebounded strongly, putting pressure on oil prices.
In addition, concerns over possible disruptions to oil supplies in the Middle East due to the conflict with Israel and Hamas have weakened, weakening the risk premium for crude oil.
As of 13:03 Beijing time (01:03 a.m. Eastern Time), Investing.com commodity prices showed: U.S. WTI crude oil futures prices rose 0.15% to US$75.45/barrel; Brent crude oil futures prices rose 0.18%, reported at US$79.68/barrel.
h2 Weak economic signals weaken oil markets/h2
Data released on Thursday showed that inflation in China, the world’s largest oil importer, fell back into negative territory in October. Earlier this week, China’s export data also remained negative and weaker than expected.
Meanwhile, while China’s oil imports have remained stable, analysts have warned that demand for crude oil could slow, especially amid high inventories and possible reductions in refinery export quotas.
However, China’s fuel demand grew strongly in October, mainly due to the increase in tourist arrivals during the Golden Week. However, other economic indicators over the same period still point to weak business activity, which traders worry could further weaken oil demand this year.
In the euro zone, data released on Wednesday showed that retail sales continued to decline in October, exacerbating concerns about an economic recession in the region. UK GDP data due for release on Friday is also expected to remain subdued.
Signs of continued economic weakness in recent weeks have shaken expectations that oil demand will remain stable this year.
At the same time, although Saudi Arabia said that crude oil consumption will remain strong, it failed to prevent the decline in oil prices, especially as global economic conditions continue to deteriorate.
Although Saudi Arabia and Moscow have also said they will continue to cut production until the end of 2023, the market has begun to doubt whether this will be enough to support crude oil prices, especially as other OPEC members increase production.
U.S. oil production has also risen steadily in recent months.
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Compiler: Liu Chuan