In trading on Wednesday (13th), crude oil futures prices fell. WTI crude oil futures prices fell from their highs in the past 7 years and closed down for the first time in 5 trading days, due to concerns about the outlook for global economic growth and the outlook for China’s oil demand , Putting pressure on crude oil.
DTN market analyst Troy Vincent said that after Chinese customs data showed that crude oil imports in September fell by 5% from the previous month and fell by 15% from the same period last year, oil prices fell.
“Traders and investors are seeing more and more evidence that rising energy prices have caused global economic risks. Inflation is one of the main reasons for the downward revision of global GDP growth expectations this year and next. The impact caused by industrial activities is the most.”
- The price of WTI crude oil futures for November delivery fell 20 cents, or nearly 0.3%, to close at US$80.44 per barrel, an intraday low of US$79.42.
The previous day, WTI crude oil futures rose for the fourth consecutive day and closed at the highest price since October 30, 2014.
- The price of Brent crude oil futures for December delivery fell 24 cents, or 0.3%, to close at $83.18 per barrel.
Sevens Report Research analysts pointed out: “Crude oil futures are still in a clear upward trend, because WTI crude oil futures still easily closed above 80 US dollars per barrel, close to multi-year highs, but because of the recent rapid rise, WTI is at 80 It is not surprising that there is a consolidation near the US dollar.”
OPEC released its monthly report on Wednesday, maintaining its forecast of oil demand growth in 2022 unchanged at 4.2 million barrels per day, while global oil demand averaged 100.8 million barrels per day.
OPEC moderately revised down its demand growth forecast for 2021 from the previous estimate of 5.96 million barrels/day to 5.8 million barrels/day. The actual data in the first three quarters of this year was lower than expected, but it was affected by seasonal peak oil seasons and heating fuels. The rising demand, coupled with the high price of natural gas to promote the market to switch to petroleum products, the assumption of demand growth this season is quite healthy.
Commercial Bank of Germany analyst Carsten Fritsch pointed out that China’s daily crude oil imports in September were less than 10 million barrels, which was 500,000 barrels per day lower than the level seen in August. At the same time, natural gas imports rose to 10.62 million tons. The highest level since. Coal imports reached 32.9 million tons, the highest this year.
API released the US crude oil inventory report later on Wednesday. Last week (as of October 8th) crude oil inventories increased by 5.2 million barrels, gasoline inventories fell by 4.6 million barrels, and distilled oil inventories fell by 2.7 million barrels.
According to the S&P Global Platts Energy Information survey, analysts on average expected that last week (as of October 8th), US crude oil inventories decreased by 500,000 barrels, gasoline inventories decreased by 400,000 barrels, and distilled oil inventories decreased by 800,000 barrels.
Other energy commodity trading
- The price of natural gas futures for delivery in November rose 1.5% to close at US$5.59 per million Btu.
- The price of gasoline futures for November delivery rose nearly 1% to close at nearly $2.406 per gallon, the highest closing price since October 2014.
- The price of hot fuel oil futures for delivery in November rose 0.4% to close at $2.521 per gallon, the highest closing price since October 2014.
During the interview, Russian President Putin denied that Russia had withheld the supply of natural gas to Europe and said that “it is necessary to negotiate with the natural gas company Gazprom to obtain any supply beyond the contractual scope.”
EIA released its monthly report on Wednesday, showing that the average heating fuel cost of American households has increased by 30%. EIA also expects that US households that use petroleum for heating will increase their spending by 43% this winter, while households that use propane will spend 54% more.
DTN analyst Vincent expects that as winter approaches, oil and natural gas prices will continue to fluctuate. The balance of supply and demand in the next few months will depend on the weather conditions in the winter, and on the other hand, depending on the degree of demand destruction caused by high prices.
