Business Emerge, September 6: Oil prices hovered near their lowest point in over a year on Thursday, driven by ongoing concerns about demand in major markets like the U.S. and China. These concerns, coupled with a potential increase in oil supply from Libya, outweighed a significant reduction in U.S. crude inventories and a potential delay in production hikes by OPEC+ countries.
The U.S. West Texas Intermediate (WTI) crude price fell slightly by 5 cents, reaching $69.15 per barrel, marking its lowest close since December 2023 for the third consecutive day. Similarly, Brent crude prices saw a minor decline of 1 cent, closing at $72.69 per barrel—the lowest since June 2023, continuing the trend for a second day in a row.
Despite these decreases, oil markets were supported by a substantial drop in U.S. crude storage. The U.S. Energy Information Administration reported that 6.9 million barrels were drawn from storage in the week ending on August 30, far exceeding analyst predictions of a 1 million barrel withdrawal. Additionally, the American Petroleum Institute recorded a similar reduction of 7.4 million barrels earlier in the week.
Further stabilizing oil prices, the Organization of the Petroleum Exporting Countries (OPEC) and its partners, including Russia, are discussing postponing planned production increases initially set for October, aiming to avoid oversupply in the already uncertain market. This move has offered additional support to oil prices amid fluctuating demand forecasts.