Singapore / Melbourne:
Oil prices fell on Thursday after rising oil prices in the previous two sessions, as weak fuel demand re-emerged and producers in the Gulf of Mexico prepared to resume production following Hurricane Sally. Brent crude futures fell 67 cents – or 1.6 percent, to $ 41.55 per barrel at 0628 GMT (11:58 am in India) after climbing 4.2 percent on Wednesday.
US West Texas Intermediate (WTI) crude futures were down 70 centimeters, or 1.7 percent, to $ 39.46 a barrel after jumping 4.9 percent on Wednesday.
Vandana Hari in the oil market market said, “We are taking some benefits this morning from market participants, who remain largely skeptical that the price of crude oil is at a weak turn of the market through Q3-Q4 And especially don’t buy in tomorrow’s sharp rebound. ” Wanda Insights.
US distillate stockpiles dragged less than expected to a large increase in prices, including diesel and heating oil, which raised concerns about fuel demand in the world’s largest economy and fuel consumer.
“Distillate demand … is a major point of concern,” Commonwealth Bank Commodities analyst Vivek Dhar said in a note.
US Energy Information Administration (EIA) data showed distillate stockpills rise by 3.5 million barrels on Wednesday. The EIA reported that weekly demand for fuel fell to 2.81 million barrels per day (bpd), up 27.2 percent from a year earlier.
Mr. Dhar said distillate stocks are at this year’s high since at least 1991, and American refiners’ margin for distillate production is the lowest in 10 years.
“It is a powerful disinfectant to boost activity for refiners and directly indicates demand pressures facing a suite of oil products,” he said.
US refiners processed 13.5 million barrels per day (bpd) of oil last week, EIA data showed, down 19.3% from a year earlier.
Energy companies were beginning to return the crew to offshore oil platforms in the Gulf of Mexico after the storm sally roared. Mexico’s offshore oil production of the US Gulf was halted at about 500,000 bpd before the storm.
Sources told the news agency Reuters that a panel of the Organization of Petroleum Exporting Countries (OPEC) and its partners known as OPEC +. .
Ms Harey said the meeting may have limited impact on market sentiment as OPEC + has consistently sent “signs that they lack some members of the quota-compliance crunch under control and to establish this correctly Will pursue compensation mechanisms. “
OPEC + agreed to cut production by 7.7 million bpd or about 8 percent by December from global demand in July. Iraq and others agreed in September earlier this year to pump below their quota to compensate for overproduction.