Oil prices hit two-week low due to rising US inventories

Last Updated on October 29, 2021

Oil prices fell during the European market trading session today to continue their losses for the second consecutive session, recording their lowest levels in two weeks. US commercial crude stocks, according to official data from the US Energy Information Administration.

Prices have also been affected recently as a result of concerns about global demand for fuel, in light of the high cases of Coronavirus infection in most parts of the world.

Oil prices continue to decline

Oil prices

At 09:35 GMT, West Texas Intermediate “US crude” fell by about 1.9%, to trade the price of a barrel around the level of 80.62 US dollars, the lowest since the fourteenth of this October, from the opening level of the trading session today at 82.17 dollars, and reached the highest price at $82.40 a barrel.

The international benchmark “Brent crude” also fell by 2.3% to the lowest level of $ 82.32 a barrel since the thirteenth of October, compared to the opening level of $ 84.22, and early in the session reached the highest price of $ 84.27 a barrel.

At the conclusion of yesterday’s trading, US crude oil lost 2.8%, and Brent crude, the global price measure, also declined by 2.5%, which is the largest daily loss in percentage terms in about three weeks, and this largest loss is attributed to the acceleration of sales operations with the aim of obtaining profits after prices recorded in Earlier, it reached its highest levels in several years, coinciding with the easing of fears of widening the market deficit.

US inventory report

The US Energy Information Administration announced in its official report, which is issued on a weekly basis, that commercial crude stocks in the United States rose by about 4.3 million barrels during the (last week) ending on the twenty-second of this month, in the fourth weekly increase in the last five weeks. This came Exceeding economic expectations, which indicated an increase of 2.0 million barrels, in a negative sign indicating weak levels of demand and actual consumption in the “largest oil consumer in the world.”

According to these data, total commercial stocks in the United States rose to about 431 million barrels, the highest since the week ending on the twentieth of January, August 2021.

Administration reports also indicated that US production stabilized during the past week without any significant changes, to remain at a total of 11.3 million barrels, and the United States is still the largest oil producer in the world.

Demand concerns

Oil prices are currently exposed to many negative pressures, especially related to the pace of global fuel demand recovery, especially after the outbreak of the Coronavirus infection in China, “the second-largest oil consumer in the world” and a record rise in the number of deaths, with the escalation of the risk of closure in Russia to prevent the spread of the new wave. of the pandemic, in addition to the high incidence of infection in Western Europe.

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

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