Rising Inventory Causes Oil Prices to Slip

    Oil prices which saw the highest prices in the past seven years, slipped yesterday after industry reports suggested an increase in stockpiles of U.S. crude.

    The crude future on the New York Stock exchange traded below $ 83 after seeing the prices increase by more than3 % in the last four trading sessions. As per Bloomberg News, The American Petroleum Institute reported that crude oil inventories increased by 3.39 barrels in the past week. The official government confirmed on Wednesday that these increases signaled consecutive four weeks of gains in inventory levels. 

    A pullback in crude price looks due as per one of the technical indicators. The 14-day RSI is above 70 for West Texas, a level that confirms an overbought position for crude. 

    Since 2014, oil has rallied to its highest level. The energy shortage coupled with rising demands after the pandemic rebound. Also, Russia indicates that it will not go out and ease the natural gas supply to Europe unless it gets the regulatory approval to ship the gas through the controversial pipeline of Nord Stream 2.


    The National Energy Administration of China held a meeting with oil refiners executives on Tuesday to discuss its import of crude amidst rising prices. The meeting was to exchange views and help the regulators keep a tab on market developments. The meeting ended without any policy decision as sources.

    According to Suvro Sarkar, an Energy analyst with DBS Bank, “oil price movement is not because of its fundamentals but more due to spillover from the natural gas market. He added that oil prices would remain firm despite tight supplies in winter. 

    Price Movements 

    • WTI (Western Texas Intermediate) for November delivery fell to $82.61 a barrel on New York Mercantile Exchange. This is a 0.4 % fall after rising by 0.6% on Tuesday.
    • Compared to November, December deliveries were more active and fell by 0.6 % to $81.97 in Singapore. Brent also lost 0.5% to $ 84.63 on ICE’s future Europe exchange. This was after it rose 0.9% in the previous day, touching its highest level since October 2018. 

    Russia wants the German European council approval to use its Nord 2 pipeline in exchange for increasing the natural gas supply, according to sources close to Kremlin and state-run Gazprom. To reinforce its position, the pipeline operator said that the natural gas pipeline is full and ready for shipment but waiting till approvals are received.

    As per the API, the stockpiles of U.S. gasoline and distillates, including diesel, declined last week. As per a Bloomberg survey forecast for a median estimate, the Energy Information Administration is expected to report a 2-million-barrel increase in crude inventories.

    RELATED ARTICLES

    online jobs for students

    Online Jobs for Students: Best ways to Earn Money & Build Skills 

    Balancing academics and price range can be challenging for college students, but online jobs offer...
    Best Trading Apps to Open a Demat Account

    Best Trading Apps to Open a Demat Account: Features & Fees

    Investing in the stock market has become more accessible than ever with trading apps that...
    5 Mistakes to Avoid for Choosing the Best Share Market App

    5 Mistakes to Avoid for Choosing the Best Share Market App

    Investing in the Indian share market is now easier than ever in the current digital...
    Wheon.com finance tips

    Wheon.com finance tips of 2025: What’s Changing and Why It Matters

    The financial world never stands still, and 2025 is no exception. This year, we’ve witnessed...
    wheon.com finance tips

    Wheon.com Finance Tips: Top Financial Services Trends of 2025

    Wheon.com finance tips are more important than ever, given how fast money matters are changing....
    Smart Gifting Strategies - How to Gift Annuities While Minimizing Tax Impact

    Smart Gifting Strategies – How to Gift Annuities While Minimizing Tax Impact

    For individuals who are fortunate enough to have more savings than they need for retirement,...
    Wheon com

    Wheon com: Your Gateway to Elevated Online Presence with an Effective Guest Post

    Ever feel like your website's voice is lost in the digital crowd? Are you struggling...
    wellhealthorganic.com : remove dark spots on face tang

    WellHealthOrganic.com : remove dark spots on face tang – Natural Remedies for Brighter Skin

    Wellhealthorganic.com : remove dark spots on face tang – Let's talk about those stubborn dark...
    kutty movies.com

    Kutty Movies.com: Your Gateway to Heartfelt Cinema

    Kutty movies.com feels like finding a secret map to a whole world of films, but...
    brand strategy

    Brand Strategy: Your Ultimate Guide To Success

    Brand strategy is the heart of your business, but too many miss the mark, wandering...
    Astronaut Sunita Williams

    Astronaut Sunita Williams: Challenges, Triumphs, and Lessons 

    Space exploration has usually involved humanity, pushing the limits of what's viable. The experiences of...