Crude Oil Prices Falls as Brent Falls Just Short Of $98 Per Barrel

Crude oil prices fell on Thursday after a string of rises earlier in the week. Brent crude, in particular, fell sharply just before it approached the $98 per barrel mark.
Brent crude’s price dropped by 1.69% on Thursday, losing $1.63 for the day and putting the price to $94.92. The West Texas Intermediate (WTI) contract for November likewise saw a downturn, falling by $2.10 per barrel (-2.24%) to $91.58. This drop came after WTI’s modest increase on Wednesday, when it hit $94.89.
The increase was brought on by the publication of the EIA’s Weekly Petroleum Status Report, which showed a large decrease in U.S. crude oil stockpiles for the week ending September 22 of 2.2 million barrels.
Additionally, the research noted a drop in oil inventories kept in Cushing, Oklahoma, to levels last seen in the summer of 2022.
Concerns about a possible supply deficit were first raised in the industry as a result of the drop in Cushing inventories.
But by Thursday afternoon, prices were showing that this panic was overblown and that a market correction was necessary.
The EIA’s most recent figures show that Cushing’s inventories are currently at 21.958 million barrels, which is a surprisingly low number given that these tanks have a capacity of about 100 million barrels.
Some experts have noted that tanks approach operational lows at 10%–20% of their capacity, making it difficult to physically take petroleum from them. This is comparable to scraping the bottom of the barrel.
Although prices dropped on Thursday, it’s important to remember that both WTI and Brent have been trading about $10 per barrel higher since the end of August.
Analysts attribute this increased tendency to market apprehensions over conceivable more OPEC production restrictions as winter draws near.
Even some analysts claim that the coveted $100 per barrel level for oil prices may still be within reach.

Source: allnewsng.com

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