Oil drops to 3-month low as waning demand in US, China outweigh supply cuts; Brent crashes to $79/bbl
₹6,324 per bbl, having swung between ₹6,306 and ₹6,481 per bbl during the session so far, against a previous close of ₹6,507 per barrel. Also Read: India's oil demand up 4% in October, jet fuel consumption hits 43-month high: S&P Global -The EIA now expects total US petroleum consumption to fall by 300,000 barrels per day (bpd) this year, reversing its previous forecast of a 100,000 bpd increase. US crude oil stocks rose by almost 12 million barrels last week, market sources said late on Tuesday, according to American Petroleum Institute figures.
-Data from China, the world's biggest crude oil importer, showed its total exports of goods and services contracted faster than expected, fueling worries about the energy demand outlook. In the euro zone, data showing falling retail sales also highlighted weak consumer demand and the prospect of recession. -Still, China's October crude oil imports showed a strong growth and its central bank governor said on Wednesday that the world's second-biggest economy is expected to hit its gross domestic product growth target this year.
Beijing has set a target of about 5 per cent growth. -India's oil demand is expected to grow by 258,000 bpd in 2023, revised higher by 9,000 bpd from S&P Global's previous update on strong diesel sales. The net oil impoter's total demand in 2023 is expected to be 7 per cent above 2019, before rising to about 11 per cent in 2024.
-Analysts from Goldman Sachs estimated that seaborne net oil exports by six countries from oil producer group Organisation of Petroleum Exporting Countries (OPEC) will remain only 0.6 million bpd below April levels. -OPEC has announced cumulative production cuts amounting to 2 million bpd since April 2023. In more bullish news for
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