Oil prices have declined due to weak demand from China, the largest crude importer in the world.
Brent crude futures fell by 0.9% to $71.91 a barrel, while U.S. West Texas Intermediate (WTI) crude futures dropped by the same percentage to $68.08. This decline reflects broader concerns in the market, as major forecasters have highlighted bearish fundamentals affecting the oil market.
China's oil refiners processed 4.6% less crude in October compared to the same month last year, marking the seventh consecutive month of year-on-year declines. This decrease in refining activity is attributed to plant closures and reduced operating rates among smaller independent refiners.
The International Energy Agency (IEA) predicts that global oil supply will exceed demand by 2025, driven by increased production from the U.S. and other non-OPEC producers. On the other hand, OPEC has revised its global oil demand growth forecast downward, citing weaknesses in key markets such as China and India.
U.S. crude inventories rose by 2.1 million barrels, indicating an oversupply in the market, while gasoline stocks and distillate stockpiles experienced unexpected declines. These contrasting trends in inventories highlight the complexities of the current oil landscape.