Global oil prices are showing a decline following the release of an industry report indicating an increase in oil stocks in the United States. After a recent rise, Brent crude futures fell by 11 cents (0.2%), reaching $64.78 per barrel. Meanwhile, West Texas Intermediate (WTI) futures decreased by 9 cents, or 0.2%, to $60.65 per barrel.
This is reported by Finway
Rising Stocks in the US Create Pessimistic Sentiments in the Market
According to data from the American Petroleum Institute (API), last week, oil stocks in the US increased by 4.45 million barrels. Gasoline stocks also rose by 1.55 million barrels, while distillates increased by 577 thousand barrels. These figures have raised concerns about a potential oversupply in the oil market.
“Overall, the report was relatively pessimistic,” noted analysts from ING on commodity markets, although they pointed out that “market participants are more concerned about supply risks than the likelihood of oversupply in the future.”
US Sanctions Prevent Price Collapse
Alongside the rising stocks, the situation in the market is influenced by US sanctions against leading Russian oil companies, including Rosneft and Lukoil. The US Department of the Treasury stated that the imposed restrictions are already reducing the Russian Federation’s revenues from oil exports, and further reductions in supply to global markets are expected in the future. Oil buyers from China and India are beginning to look for alternative suppliers.
The sanctions involve halting cooperation with Russian companies until November 21, creating additional uncertainty for the market. According to analysts, oil prices currently remain within a defined range as traders await further developments following the full implementation of the sanctions.