Oil Holds Biggest Loss In A Week As US Product Stockpiles Swell
West Texas Intermediate’s January contract traded above $59 a barrel after retreating more than 2% on Wednesday. Brent closed below $64.
Oil held the biggest decline in a week after US fuel inventories rose, while investors monitor the fallout from sanctions on two major Russian producers that are scheduled to take effect on Friday.
West Texas Intermediate’s January contract traded above $59 a barrel after retreating more than 2% on Wednesday. Brent closed below $64. Gasoline and distillate stockpiles — a category that includes diesel — climbed for the first time in over a month last week, according to government data.
Still, US crude stockpiles fell by 3.4 million barrels, compared with an expected gain of 4.4 million barrels flagged by an industry group a day prior.
Crude is down this year on expectations for a large surplus, though geopolitical tensions have added some risk premium to prices. US sanctions on Russian oil giants Rosneft PJSC and Lukoil PJSC are due to start Nov. 21, and the looming penalties have already upended flows, most notably to India.
Suitors are lining up to acquire various parts of Lukoil’s international business following the US penalties. Exxon Mobil Corp. officials have met with Iraqi Oil Minister Hayyan Abdul Ghani to discuss the Russian company’s stake in the West West Qurna 2 field, which accounts for 10% of Iraqi production.
Russian fuel shipments in the first half of November fell to the lowest since the invasion of Ukraine began as sanctions and attacks on the country’s refining infrastructure crimp exports.q
Prices:
WTI for January delivery was 0.6% higher at $59.59 a barrel at 8:17 a.m. in Singapore.
The December contract, which expires on Thursday, rose 0.5% to $59.75 a barrel
Brent for January settlement closed 2.1% lower at $63.51 a barrel on Wednesday.
