Oil prices rebound modestly from previous session setback
NEW YORK, Nov. 11 (Xinhua) – Oil prices edged up Thursday, recouping some of the massive losses they suffered in the previous session.
West Texas Intermediate for December delivery added 25 cents, or 0.3%, to settle at $ 81.59 a barrel on the New York Mercantile Exchange. Brent crude for January delivery rose 23 cents, or 0.28%, to close at $ 82.87 a barrel on the London ICE Futures Exchange.
On Wednesday, the benchmark US crude and Brent fell 3.3% and 2.5%, respectively.
Traders weighed the risks on the supply and demand side.
The U.S. Energy Information Administration (EIA) said on Wednesday that the nation’s crude oil inventories rose 1.0 million barrels during the week ending November 5, roughly matching the analyst estimates polled by S&P Global Platts.
According to the EIA, total inventories of motor gasoline fell by 1.6 million barrels last week, while inventories of distillate fuel fell by 2.6 million barrels.
In its monthly report released on Tuesday, the EIA said it estimated that “global crude oil consumption has exceeded crude oil production for five consecutive quarters dating back to the third quarter of 2020.”
“We expect global demand for crude oil to exceed global supply by the end of the year,” the EIA said in the report, adding that it expects global oil stocks to start building up. in 2022, “driven by increased production from OPEC + and the United States, as well as slower growth in global oil demand.