Global oil prices keep sliding — Reuters
Photo: Global oil prices continue to decline (Getty Images)
Global oil prices fell on Wednesday as rising US inventories heightened concerns about oversupply, Reuters reports.
According to the agency, Brent futures fell 11 cents (0.2%) to $64.78 per barrel after rising 1.1% in previous trading. West Texas Intermediate contracts lost 9 cents (0.2%), falling to $60.65 per barrel after rising 1.4% on Tuesday.
According to the American Petroleum Institute (API), cited by industry sources, US crude oil and petroleum product inventories rose last week. The report says that for the week ending November 14, oil inventories increased by 4.45 million barrels, gasoline by 1.55 million barrels, and distillates by 577,000 barrels.
LSEG senior oil analyst Emre Jamil noted that prices are holding steady as the market awaits the effect of sanctions against Lukoil and Rosneft, which will take effect on November 21, although excess supply is putting downward pressure.
Analysts at Chinese brokerage Haitong Futures note that the diesel fuel market is supporting oil prices, but prolonged oversupply is forcing investors to carefully assess the prospects for further price growth.
China's large state-owned refineries have suspended purchases of ESPO crude oil following US sanctions against producers PJSC Rosneft and PJSC Lukoil.
At the same time, some private refineries, which are usually more risk-tolerant when it comes to purchasing sensitive oil, have also recently been avoiding this type of oil from the Russian Far East.
Also, after the US announced sanctions against Lukoil and Rosneft, several European countries with Lukoil refineries began looking for solutions to prevent the plants from shutting down.
At the same time, information has recently emerged that Lukoil may sell its foreign assets to the Swiss company Gunvor.
