On Wednesday, October 30, international crude oil prices rose by over 2% following unexpected declines in US crude and gasoline inventories. Additionally, reports indicated that the Organisation of Petroleum Exporting Countries (OPEC) may delay its planned oil output increase.
Brent crude futures increased by $1.81, or 2.5%, reaching $72.93 per barrel. Meanwhile, US West Texas Intermediate crude rose by $1.85, or 2.8%, to $69.06. In India, crude oil futures on the multi-commodity exchange (MCX) climbed 1.73% to ₹5,766 per barrel.
According to the Energy Information Administration (EIA), US gasoline stockpiles fell to a two-year low due to strong demand. Crude inventories also saw a surprising decrease as imports dropped.
US crude oil imports from Saudi Arabia fell to their lowest level since January 2021, at just 13,000 barrels per day (bpd), down from 150,000 bpd the previous week. Imports from Canada, Iraq, Colombia, and Brazil also declined.
Commodity analysts noted that the decrease in gasoline inventories was a key factor driving prices higher. Lower imports helped crude inventories show a slight draw, further supporting oil prices. Reports from Reuters indicated that OPEC+, which includes OPEC and its allies like Russia, might postpone its planned oil production increase by a month or more due to concerns over weak oil demand and rising supply.
OPEC+ has maintained that any changes to voluntary supply cuts will depend on market conditions. The group is set to increase output by 180,000 bpd in December after cutting output by 5.86 million bpd, approximately 5.7% of global oil demand.
A decision to delay the output increase could be announced as soon as next week. Analysts suggest that OPEC+ is re-evaluating the timing of the output increase, especially in light of the weak economic conditions in China, which have led to lower global demand growth estimates. OPEC+ is scheduled to meet on December 1 to discuss its next steps.
Commodity and financial markets are also preparing for two significant events next week: the US election and a meeting of China’s top legislative body. Investors are closely watching for any additional stimulus efforts aimed at reviving the Chinese economy, the world’s largest crude importer.
Related Topics:
- Energy and OPEC Take Center Stage in the US Election Campaign
- OPEC Daily Basket Price Reached $77.66 Per Barrel on Friday
- Venezuelan Oil Minister Holds Meeting with OPEC Leader