International crude oil prices jumped on Wednesday, October 30, rising more than two percent after data showed US crude and gasoline inventories unexpectedly fell last week and according to reports Organization of Petroleum Exporting Countries (OPEC) Its planned oil production growth will likely be delayed.
After falling more than six percent at the start of the week on lower risks of a wider Middle East war, brent crude futures It rose $1.81, or 2.5 percent, to $72.93 a barrel. U.S. West Texas Intermediate crude rose $1.85, or 2.8 percent, at $69.06. Domestic crude oil futures price increased by 1.73 percent 5,766 per barrel on the Multi-Commodity Exchange (MCX).
Brent rose 3%: What is causing crude oil prices to rise?
US gasoline inventories unexpectedly fell to a two-year low last week due to strong demand, the Energy Information Administration (EIA) said. At the same time, a dramatic decline in crude oil reserves was also recorded due to the decline in imports.
-US crude oil imports from Saudi Arabia fell to just 13,000 bpd last week, their lowest point since January 2021, from less than 150,000 bpd the previous week. EIA said crude oil imports from Canada, Iraq, Colombia, Brazil decreased this week.
-Commodity analysts said the most supportive element amid higher implied demand week-on-week was gasoline inventory draws; Lower imports helped lead to a slight drawdown in crude oil inventories, which boosted oil prices.
-OPEC+, which includes OPEC and allies like Russia, could delay planned oil output in December by a month or more due to concerns over soft oil demand and rising supply, news agency Reuters reported.
-OPEC+ has always advised that voluntary supply cuts will be subject to market conditions. The group is scheduled to increase output by 180,000 barrels per day (bpd) in December. OPEC+ has cut production by 5.86 million bpd, equivalent to about 5.7 percent of global oil demand.
-The decision to postpone the increase may come early next week. Analysts said OPEC+ reconsidering the timing of its barrel withdrawal is not surprising, especially given weak macroeconomic realities in China, which have led to a decline in global demand growth projections. OPEC+ is scheduled to meet on December 1 to decide on its next policy steps.
-Commodity and financial markets are also gearing up for two key events next week – the US election and a meeting of China’s top legislative body, with investors eyeing any additional stimulus efforts to revive the economy. The Asian country is the world’s largest crude oil importer.
