Breaking News
Get 40% Off 0

Oil falls 4% as build in gasoline stocks fuel demand concerns

Published Dec 05, 2023 08:56PM ET Updated Dec 06, 2023 04:21PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS
 
LCO
+0.39%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+0.35%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Arathy Somasekhar

HOUSTON (Reuters) -Oil prices fell nearly 4% on Wednesday to their lowest settlements since June, as worries about global fuel demand mounted after U.S. data showed a larger-than-expected rise in gasoline inventories.

Brent crude futures settled down $2.90, or 3.8%, at $74.30 a barrel. U.S. WTI crude futures fell by $2.94, or 4.1%, to $69.38 a barrel.

"There is demand destruction coming in from the fuel side,"said Dennis Kissler, senior vice president of trading at BOK Financial.

"The market is more demand focused than supply focused right now."

Concerns over China's economic health and future fuel demand also weighed on prices, a day after rating agency Moody's (NYSE:MCO) lowered the outlook on China's A1 rating to negative from stable.

U.S. gasoline stocks rose by 5.4 million barrels last week, the Energy Information Administration said, more than quintuple the 1 million-barrel rise that analysts had expected. U.S. gasoline futures plummeted to their lowest in two years.

"Even though it was not the peak gasoline season, demand during the long Thanksgiving holiday weekend was lackluster," said John Kilduff, partner with Again Capital LLC.

Gasoline demand last week lagged the 10-year seasonal average by 2.5%.

The U.S. dollar also touched a two-week high, which pressures demand by making oil more expensive for holders of other currencies.

An unexpected fall in U.S. crude inventories did little to support prices. Crude inventories fell by 4.6 million barrels, far exceeding the 1.4 million-barrel drop analysts had expected. [EIA/S]

OPEC+, the Organization of the Petroleum Exporting Countries and allies such as Russia agreed late last week on voluntary output cuts of about 2.2 million barrels per day (bpd) for the first quarter of 2024.

This week, Saudi and Russian officials said the cuts should prevent a build up in oil inventories in the first quarter and could be extended or deepened.

Despite the OPEC+ supply curbs, prices have slipped nearly 11% since the settlement on Nov. 29, the day before OPEC+ met.

On Wednesday, Russian president Vladimir Putin traveled to the United Arab Emirates and Saudi Arabia to meet with the UAE's President Sheikh Mohammed Bin Zayed Al Nahyan and Saudi Crown Prince Mohammed bin Salman. Oil and OPEC+ were on the agenda.

Forward prices for U.S. crude were at their steepest premium to prompt barrels, a sign of ample supply and growing fears of slow demand.

Oil falls 4% as build in gasoline stocks fuel demand concerns
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (7)
Rubbing Hands
Rubbing Hands Dec 06, 2023 5:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
its build season for inventory. Try again with something that makes sense.
First Last
First Last Dec 06, 2023 5:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"larger-than-expected rise in gasoline inventories"  --  "build season" is built-in to the expectation.
Brad Albright
Brad Albright Dec 06, 2023 3:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Must be more of President Biden's war on oil.
Show previous replies (4)
First Last
First Last Dec 06, 2023 3:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ok Crude   Donkey ar$es are those who didn't recognize Biden's oil trading prowess.  He sold high and will re-fill at low prices; profits to the taxpayers!
First Last
First Last Dec 06, 2023 3:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ok Crude   Donkey behinds are those who didn't recognize Biden's oil trading prowess.  He sold high because he knew his Bidenomics will allow re-fill at lower prices; profits to the taxpayers!
First Last
First Last Dec 06, 2023 3:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Donkey behinds are those who didn't recognize Biden's oil trading prowess.  He sold high because he knew his Bidenomics will allow re-fill at lower prices; profits to the taxpayers!
Ronald Lewis
Ronald Lewis Dec 06, 2023 3:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
more like war on the Kingdom for not playing ball. Since none of the oil ministers have cried foul yet, this may have been orchestrated by SA, but I doubted. Biden and his idiot treasury secretary are still trying to punish Russia by oil price caps. I guess they forgot it's OPEC +.
First Last
First Last Dec 06, 2023 3:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Donkey behinds are those who didn't recognize Biden's oil trading prowess.  He sold high because he knew his Bidenomics will allow re-fill at lower prices; profits to the taxpayers!
Royce Murph
Royce Murph Dec 06, 2023 1:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lets tell the real story as to "WHY" gas inventories rose..  EIA-- U.S. crude oil refinery inputs averaged 16.2 million barrels per day during the week ending December 1, 2023, which was 179 thousand barrels per day more than the previous week’s average. Refineries operated at 90.5% of their operable capacity last week. Gasoline production increased last week, averaging 9.5 million barrels per day. Distillate fuel production increased last week, averaging 5.1 million barrels per day. U.S. crude oil imports averaged 7.5 million barrels per day last week, increased by 1.7 million barrels per day from the previous week. More lipstick on the pig by the Biden administration and articles written by people like you who only tell the partial story.
Show previous replies (5)
First Last
First Last Dec 06, 2023 1:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Da Go   Oil does keep Muslim theocracies & Russian fascism in power.
Ranger Jones
Ranger_Jones Dec 06, 2023 1:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We also imported more than 100k barrels of gasoline per day than the same week last year.
NK Dole
NK Dole Dec 06, 2023 1:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
First Last  I just cannot understand what is with people constantly bringing up Trump.  Gee whiz already, he's been out of office for 3 years.  Biden is in office, so it makes perfect sense to reference him.  But Trump?  Come on, Man lol.
First Last
First Last Dec 06, 2023 1:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
NK Dole  I guess I could've compared Royce to another conspiracy nutjob like Alex Jones or Tucker, but they're retrumplicans. too.    "it makes perfect sense to reference him"  -- This article not explaining why gasoline stocks are up in minute details has nada to do w/ Biden.  But it makes perfect sense to you because you're biased and only complaining about anti-Trump mentions.
First Last
First Last Dec 06, 2023 1:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ranger Jones  The US will remain a net petroleum exporter in 2023.
First Last
First Last Dec 06, 2023 1:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Crude is at 2 years low
First Last
First Last Dec 06, 2023 1:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
SPR can be re-filled at a profit.
Patel Pratik
Patel Pratik Dec 06, 2023 12:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good news petrol lower price
Chef khushvinder
Chef khushvinder Dec 06, 2023 11:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
now what happened it will go up
Réfugier Dans Son Pays
Réfugier Dans Son Pays Dec 06, 2023 11:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good news
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email