Oil prices down on demand woes over China curbs, US stock build

Oil prices continued their losses as demand from China remained uncertain with sustained Covid-19 restrictions and rising crude stockpiles in the US, the world’s largest oil consumer.

International benchmark Brent crude traded at $92.47 per barrel at 09.58 a.m. local time (0658 GMT), a 0.19% decrease from the closing price of $92.65 a barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $85.57 per barrel at the same time, a 0.30% loss after the previous session closed at $85.83 a barrel.

Price declines came over rising demand concerns after the Energy Information Administration (EIA) said US commercial crude oil inventories rose by around 3.9 million barrels to 440.8 million barrels, against the market expectation of an increase of around 1.1 million barrels.

Australia and New Zealand Banking Group (ANZ) Commodity Strategist Daniel Hynes said China’s demand outlook further hit sentiment as rising Covid case numbers led to movement restrictions.

In an e-mailed note, Hynes relayed that new cases in Beijing jumped to the highest level in more than five months.

However, supply concerns limited further losses as EU countries prepare for sanctions on Russian oil exports, which are set to take effect on Dec. 5 in response to Russia’s attack on Ukraine.

• oil exports
• Ukrain