Oil Prices Under Pressure, US Stockpiles Rise and Russia-China Tensions Continue
Oil prices fell for a second straight day after an industry report showed the largest increase in US crude inventories in more than three months. Brent prices slumped towards $64 per barrel, while West Texas Intermediate (WTI) hovered around $60 per barrel. A report from the American Petroleum Institute (API) showed that US crude inventories rose by 6.5 million barrels last week, the biggest jump since July 25, if confirmed by official data due later.
The decline in oil prices was also triggered by a stalled global stock market rally and a strengthening US dollar, which reached its highest level in more than five months. A stronger dollar makes oil and other dollar-traded commodities more expensive for international buyers. Furthermore, increased oil production from OPEC+ and non-member countries exacerbated concerns about a global oversupply.
Meanwhile, traders were also monitoring attacks on Russian infrastructure after Ukrainian President Volodymyr Zelensky announced an intensification of the attacks late last month. Ukraine claimed to have attacked the Lukoil oil refinery in Nizhny Novgorod, which processes around 340,000 barrels of oil per day, as well as several other facilities in Russia. This attack added to uncertainty in the global oil market.
Brent for January delivery fell 0.5% to $64.10 per barrel at 8:10 a.m. Singapore time, while WTI for December delivery fell 0.6% to $60.19 per barrel. (Asd)
Source: Newsmaker.id
