Oil prices edge higher after plunging to lowest level in over three months

November 09, 2023 (MLN): Global oil prices rose on Thursday after plunging to their lowest level in more than three months yesterday due to concerns over waning demand in the U.S. and China.

Brent crude is currently trading at $79.83 per barrel, up by 0.26% on the day.

While West Texas Intermediate crude (WTI) is trading at $75.63 per barrel, up by 0.17% on the day.

"The market is clearly less concerned about the potential for Middle Eastern supply disruptions and is instead focused on an easing in the balance," ING analysts Warren Patterson and Ewa Manthey said in a note to clients, referring to crude supply conditions, as Reuters reported.

Also weighing on prices, U.S. crude oil stocks rose by almost 12 million barrels last week, market sources said late on Tuesday, citing American Petroleum Institute figures.

If confirmed, that would be biggest build since February. However, the U.S. Energy Information Administration (EIA) has delayed release of weekly oil inventory data, usually on Wednesdays, until Nov. 15 to complete a systems upgrade.

U.S. crude production will rise this year by slightly less than expected but petroleum consumption will fall by 300,000 barrels per day (bpd), the EIA said on Tuesday, reversing its previous forecast of a 100,000-bpd increase.

Data from China, the world's biggest crude oil importer, showed its total exports of goods and services contracted faster than expected, feeding worries about the energy demand outlook.

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