Oil Holds Ground With Stockpiles, Russia Sanction Risks In Focus
West Texas Intermediate traded below $61 a barrel, after gaining more than 1% on Tuesday, when Brent closed near $65.
Oil steadied as traders weighed a report showing rising US stockpiles against concerns about the fallout from sanctions on Russia.
West Texas Intermediate traded below $61 a barrel, after gaining more than 1% on Tuesday, when Brent closed near $65. The industry-funded American Petroleum Institute reported a 4.4 million barrel increase in US crude inventories, as well as builds in products. That would take oil inventories to the highest in more than five months, if confirmed by official data.
US sanctions against Russian producers Rosneft PJSC and Lukoil PJSC are set to kick in within days, part of efforts to raise the pressure against Moscow to end the war in Ukraine. Ahead of that, some major Asian buyers have paused at least some purchases, and diesel markets have strengthened in Europe.
Oil has lost ground this year, including a run of three monthly declines in the period to October, on concern that worldwide supplies will top demand. The International Energy Agency has forecast a record glut next year, driven by higher output from OPEC+ as well as nations outside the cartel.
In a sign of burgeoning supplies, the amount of crude being carried on tankers hit another high, with the looming US sanctions deadline bolstering traders’ attention on the volumes. Almost 1.4 billion barrels were being hauled to destinations or sitting in floating storage last week, according to Vortexa Ltd.
Prices:
WTI for December delivery was 0.2% lower at $60.62 a barrel at 8:17 a.m. in Singapore.
The more-active January contract was at $60.51.
Brent for January settlement closed 1.1% higher at $64.89 a barrel.
