Global observed oil inventories fell in October, with the first drop in oil product stocks for the first time in four months, the International Energy Agency (IEA) said on Thursday.Global observed oil inventories dropped by 19.6 million barrels in October, with crude inventories largely unchanged, but with the first decline in refined petroleum stocks in four months. The falling product stocks in October reversed the trend from the third quarter when oil product stocks rose by 1.3 million barrels per day (bpd), while crude drew 1.6 million bpd on average, the IEA said. The latest OPEC+ cuts announced for the first quarter of 2024 are aimed at preventing a potential inventory build, the agency said. But it also noted that soaring supply from non-OPEC+ producers – led by the United States – and slowing global demand growth this quarter could make OPEC+’s task to support prices more difficult.
Oil rises on IEA demand upgrad
World oil consumption will rise by 1.1 million barrels per day (bpd) in 2024, the IEA said in a monthly report, up 130,000 bpd from its previous forecast, citing an improvement in the outlook for the United States and lower oil prices. Prices were also boosted by a larger-than-expected draw from the U.S. crude inventory, Teng added. The U.S. Energy Information Administration (EIA) said energy firms withdrew a bigger-than-expected 4.3 million barrels of crude from stockpiles in the week ended Dec. 8 as imports fell. [EIA/S]
Crude prices jump over 3% on US inventory draw
Crude oil prices for front-month settlements continued to climb further on Thursday following a large drawdown from US crude stockpiles, excluding those held in the Strategic Petroleum Reserve (SPR). A larger-than-expected weekly draw from crude inventories in the United States seemingly raised concerns about the stability of the crude supply amid winter months in the Northern Hemisphere. The upward movement of prices was likely supported by the optimism that the Federal Reserve could begin cutting interest rates next year. West Texas Intermediate (WTI) for January contracts surged 3.11% to sell at $71.71 a barrel at 9:21 am ET. Brent for February deliveries soared 3.06% to go at $76.53 per barrel.