• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 6 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 5 days China is using Chinese Names of Cities on their Border with Russia.
  • 6 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 10 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
  • 6 days Putin and Xi Bet on the Global South
  • 6 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 7 days United States LNG Exports Reach Third Place
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Crew Abandons Cargo Ship After Houthi Attack

Crew Abandons Cargo Ship After Houthi Attack

Attacks on Red Sea shipping…

Red Sea Strikes and China's Economic Stimulus Support Oil Prices

Red Sea Strikes and China's Economic Stimulus Support Oil Prices

The Houthi's renewed maritime offensive…

Crude Oil Tanks Nearly 4% as US Output Overshadows OPEC

Prices of Brent crude and West Texas Intermediate were down nearly 4% on Wednesday as an unexpected and significant increase in U.S. gasoline inventories added to concerns about lagging demand. 

Wednesday’s prices reflect the lowest levels of crude oil since June this year, shuffling between a 3.5 and 4% loss throughout the first part of the day. 

At 1:34 p.m. ET on Wednesday, Brent crude was trading $74.64, down 3.32%, for a $2.56 loss on the day. WTI was trading at $69.71, down 3.61%, for a $2.61 loss on the day. 

U.S. benchmark oil prices are down nearly 20% in the fourth quarter, to below $75 a barrel. 

Total gasoline stocks from the Energy Information Administration (EIA) for the week ended November 24 were at 218.2 million barrels, compared to 213.8 million barrels for the same time period last year. 

Source: EIA

"There is demand destruction coming in from the fuel side. The market is more demand focused than supply focused right now," Dennis Kissler, senior vice president of trading at BOK Financial, told Reuters on Wednesday. 

Record U.S. oil production has been vying with OPEC+ for market price influence. The most recent manifestation of this was the OPEC+ meeting on November 30, during which a voluntary cut of 2.2 million barrels per day was announced. That announcement failed to push oil prices upwards, and the focus remains on U.S. production. 

The Saudi Energy Minister on Monday criticized speculators after prices continued to drop for failing to understand the OPEC+ output cut deal. Last week, the EIA reported that U.S. average daily production for September remained unchanged from its record-high rate in August of 13.24 million barrels, despite cost inflation and lower international oil prices. At the same time, American shale producers have no intention of letting up on the drill bit. 


Additionally, weak economic data coming out of China continues to suggest weak demand, weighing on crude prices. 

By Tom Kool for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • George Doolittle on December 06 2023 said:
    Can't account for "Putin Russia" along with a great many so many other matters material or otherwise. Of course people could be more like me and be right for the first time in their natural life ... but that will never happen either *SOOOOOO ..*
  • Carlos Blanco on December 06 2023 said:
    OPEC+ is running out of options to manipulate the oil price as they have become irrelevant.

    Adding to that, China's economy is in decline so there are pressures from both supply and demand side.

    The prediction for a $100+ per barrel price seems foolish now. It's just based on the indulging market demand prediction by OPEC and the denial of the state of China's economy.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News