US Stockpiles Shrink, Oil Rises Slightly
Oil prices edged higher on Tuesday after an API report indicated US crude inventories fell by 3 million barrels, the first decline in four weeks. Brent for December delivery rose about 0.3% to $61.49/barrel, while WTI rose 0.3% to $57.42/barrel. The market awaits confirmation from official US government data (EIA) due Wednesday to determine the next direction.
On the geopolitical front, President Donald Trump reiterated that India would cut purchases of Russian energy. While there has been no new confirmation from India, suppliers in the country have previously indicated a cut—not a complete halt. The impact on global supply is expected to be limited, but sufficient to add to short-term tightening sentiment.
Despite the rally, oil remains on track for a third straight month of decline due to signs of a global surplus. JPMorgan's global head of commodity strategy, Natasha Kaneva, estimates that supply growth is currently 2.5x faster than demand growth—a combination that has weighed on prices throughout the month.
In the US, the government is taking advantage of low prices to replenish the SPR with a planned purchase of 1 million barrels for December–January delivery. This is a small scale purchase, but it creates a psychological "price floor." Market focus: EIA results, India's policy developments regarding Russian imports, and OPEC+ communications.
Key Points (5):
- API: US crude stocks -3 million bbl, supporting a slight increase.
- Brent $61.49 (+0.3%), WTI $57.42 (+0.3%).
- Trump: India will cut Russian oil imports (limited impact).
- Market remains under pressure from a surplus, supply growth > demand.
- US purchases 1 million bbl for SPR (December–January) sentiment floor. (asd)
Source: Newsmaker.id
