Oil fell by 5% on the background of an unexpected increase in gasoline stocks in the US
December Brent oil futures on the ICE Futures exchange yesterday fell by 5.8% to $86/barrel (-9.6% for the week, -4% for the month), and November WTI oil futures fell to 5.9% to $84.2/barrel (-11.2% for the week, -2.1% for the month) on negative macroeconomic data from the US and an unexpected increase in gasoline inventories, indicating a slowing economy.
ADP's September employment report released on Wednesday signaled a slowdown in the labor market, reducing energy demand and oil prices. In addition, retail sales in the Eurozone fell by 1.2% in August (against expectations of 0.5%), which was the biggest decline in 8 months.
On Wednesday, November WTI oil futures fell to a 5-week low, and gasoline - to a 9.5-month low. Refining margins have fallen to a 20-month low due to lower gasoline prices, making it unprofitable for refiners to buy crude oil and process it into gasoline and distillates.
According to the EIA's weekly report, U.S. gasoline inventories rose by 6.48 million barrels for the week (against expectations for a 0.3 million barrel decline), as U.S. gasoline demand fell 7% to 9- monthly minimum of 8.01 million barrels/day. Crude oil stocks in Cushing (WTI futures delivery point) increased by 132,000 barrels. At the same time, U.S. crude oil inventories fell by 2.22 million barrels for the week (with expectations of an increase of 50,000 barrels) to a 10-minimum level, and as of September 29 were 4.5% below their 5-year average, while gasoline inventories exceeded it by 1.1%. US crude oil production for September 23-29 remained at 12.9 million barrels per day, the highest figure in 3.5 years.
The OPEC+ committee announced on October 4 that it will not change the existing quotas for oil production, but is ready to react in time to any changes in the market.
Oil prices were supported by the data of the weekly Vortexa report, according to which, during the period of September 23-29, the volume of crude oil on tankers, which were parked for more than a week, fell by 11% to 82.52 million barrels.
Lower oil prices will have a negative impact on vegetable oil markets and oilseed prices, especially given the seasonal increase in production.
