He oil market is experiencing a decline this Thursday, extending the losses of the previous session, due to signs of an increase in supplies in the United States and concerns about energy demand in China.
Thus, the futures of Brent are losing 23 cents, standing at US$79.56 per barrel, while US crude West Texas Intermediate (WTI) lost 27 cents, reaching US$76.39. Both benchmarks fell more than 1.5% in the previous day.
The situation of the immediate WTI contract trading below the second month, known as contango, suggests investors’ expectation of a probable increase in prices. The discount between the immediate month contract and the second remains at -17 cents today.
Tamas Vargafrom the PVM oil brokerage, says: “Clearly, the fall in crude oil prices and the weakening of the structure is an ominous sign, which implies an excess of supply in the physical market.”
Oil: the data that the market looks at
Concerns are heightened due to crude oil stocks in the United States, which, according to the Energy Information Administration (EIA) increased by 3.6 million barrels last week, reaching 421.9 million barrels, far exceeding analysts’ expectations.
American crude oil production remains stable at the record figure of 13.2 million barrels per day (bpd).
Varga indicates that the fall in crude oil prices contradicts recent forecasts by OPEC and the International Energy Agency (IEA) on the fundamentals of global supply and demand, which predicted a shortage of supply in the fourth quarter.
In addition, October inflation data in important economic centers, such as the euro zone, the United States and the United Kingdom, They are encouraging.
Even in China, where challenges persist in the real estate sector, Positive signs of economic recovery are being observed. Economic activity strengthens in October, with industrial production increasing at a faster pace and retail sales growth exceeding expectations.
Source: Ambito
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