Oil falls as China fears weigh

It comes despite large drawdown in US crude stocks


Reuters August 17, 2023
Photo: file

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LONDON:

Oil prices fell on Wednesday despite a large drawdown in US crude stocks as investors weighed worries about China’s embattled economy against expectations of tighter supply in the United States.

Brent crude futures fell $1.23 to $83.66 a barrel by 1713 GMT, while US West Texas Intermediate (WTI) crude fell $1.33 to $79.66.

Both benchmarks fell more than 1% in the previous session to their lowest since August 8.

US crude oil inventories fell by nearly 6 million barrels last week on strong exports and refining run rates, despite crude production rising to its highest since the coronavirus pandemic decimated fuel consumption, Energy Information Administration (EIA) data showed on Wednesday.

However, product supplies of gasoline fell by 451,000 barrels per day in the week as peak driving season draws to a close.

“We’re still seeing a subpar gasoline number...it looks like we’re past peak summer travel season for many,” said John Kilduff, partner at Again Capital LLC in New York.

Published in The Express Tribune, August 17th, 2023.

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