Breaking News
Get 40% Off 0
🔎 See NVDA's full ProTips for an instant risks or rewards Claim 40% OFF

Oil prices slump to settle below $70 a barrel as supply jitters persist

Published Dec 05, 2023 09:11PM ET Updated Dec 06, 2023 05:21PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
LCO
+0.95%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+1.26%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com -- Oil prices on Wednesday settled below $70 a barrel for the first time since June, as a larger-than-expected draw in weekly U.S. inventories failed to coax the bulls out of hiding amid fears about supply glut blunting the impact of OPEC+ supply cuts set for early next year.

At 14:30 ET (19:30 GMT), the U.S. crude futures traded 4.1% lower at $69.38 a barrel and the Brent contract dropped 3.8% to $74.30 a barrel.

Larger US inventories draw takes backseat to supply surplus fears

Data from industry group the American Petroleum Institute showed that oil inventories grew 594,000 barrels in the week to Dec 1, compared to expectations for a draw of over 2 million barrels.

Weekly U.S. crude inventories fell by 4.6M barrels, compared with estimates for a decline of $1.03M, while gasoline supplies jumped by 5.4 barrels, well above expectations for a build of 1M.

The jump in gasoline supplies come just as data showed earlier this week that daily U.S. oil production hit a record high in September, adding to concerns that growing non-OPEC supply will offset the impact of the OPEC+ pledged cuts of 2.2 million barrels a day slated for early next year.

U.S. jobs data add to economic concerns

Along with worries that OPEC+ won’t be able to curtail supply levels next year, concerns are growing about cooling global economic activity next year, and thus the associated demand for crude.

Data released earlier Wednesday showed that U.S. private payrolls growth unexpectedly slowed in November, in another sign that the Federal Reserve's aggressive campaign of interest rate hikes could be hitting U.S. economic growth.

This follows ratings agency Moody downgraded its credit outlook on China, and flagged increased economic risks to the country from a property market downturn and a lack of government stimulus.

China is the world’s largest oil importer, and has steadily built up its oil inventories this year- a trend that could see the country wind down oil imports in the coming months, especially if economic conditions worsen.

Concerns over China were also coupled with weak economic prints from most major economies. PMI data from Japan, the U.S. and the eurozone largely underwhelmed in November.

Saudi Arabia reduced its official selling price for most of the buyers for January deliveries this week due to subdued oil demand and softer oil prices.

(Peter Nurse, Ambar Warrick contributed to this article.)

Upgrade your decision-making with InvestingPro+! Using discount code “INVESTPRO” receive an additional 10% off the InvestingPro+ yearly subscription. Click here and don't forget the discount code.

Oil prices slump to settle below $70 a barrel as supply jitters persist
 

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 (6)
OBiwan Kenobi
OBiwan Kenobi Dec 06, 2023 5:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oil has fallen through all the recent support levels in an edgy market.  No one wants to catch a falling knife.  Technically, this probably won't bounce until we hit the next level of support in the mid 60's.  If it falls through there, expect the mid 50's.  Once a base forms, it could rise rapidly.  What's happening now looks like mid trough capitulation and has little to do with fundamentals.
Brad Albright
Brad Albright Dec 06, 2023 10:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Where is that obnoxious loud mouth know-it-all oil long Warm Camp? Did he go broke and have to get a real job?
Mukund Jivraj
Mukund Jivraj Dec 06, 2023 10:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's always two way marketing they never know what is going to happen
Mukund Jivraj
Mukund Jivraj Dec 06, 2023 10:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Don't read News if you want to make money in Trading
Krish Puthamber
Krish Puthamber Dec 06, 2023 12:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thanks
Rubbing Hands
Rubbing Hands Dec 05, 2023 10:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what are you talking about? Chinas data was beating expectations. Also china recently increased its refinery quotas. More fake 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