Russia's Novak is on the wires tried to slow the falling crude oil:
- Fall in oil prices requires detailed study for possible OPEC+ response
- Maybe oil price fall will be short-term
Oil has been slumping due to concerns about the economy as U.S. politicians discuss ways to avoid a debt default, and investors anticipate more rate hikes globally. Prices were also affected by U.S. Treasury Secretary Janet Yellen's statement that the government could run out of money within a month, the ongoing contraction in the manufacturing sector, and signs of emerging cracks in the labor market. Additionally, concerns about diesel demand and weakening prospects from the world's two largest economies, China and the U.S., contributed to the decline in oil prices.
Earlier today the weekly inventory data showed:
- U.S. crude oil inventories declined close to expectations last week, while gasoline stockpiles unexpectedly increased sharply.
- Commercial crude oil stockpiles fell by 1.3 million barrels to 459.6 million barrels, around 2% below the five-year average.
- Gasoline stockpiles jumped by 1.7 million barrels to 222.9 million barrels, defying expectations of a 1-million-barrel decrease.
- Distillate stocks fell by 1.2 million barrels to 110.3 million barrels, remaining about 12% below the five-year average.
- Refining capacity utilization rate unexpectedly fell by 0.6 percentage points to 90.7%.