Rising U.S. Crude Oil Inventories Push International Oil Prices Back Down

As the sharp increase in U.S. crude oil commercial inventories last week intensified investors' concerns about the economic downturn suppressing demand for crude oil, international oil prices fell back below $90 per barrel again on the 8th, and oil prices in the New York market hit the lowest trading price this year.

On that day, crude oil futures prices fluctuated violently in the New York market. Rumors that the Organization of the Petroleum Exporting Countries (OPEC) might cut production caused oil prices in the New York market to rise to US$90 per barrel several times. However, news of a significant increase in the supply of crude oil, gasoline and other oil products in the United States caused oil prices to fall sharply in the New York market.

A report released by the U.S. Department of Energy on the 8th showed that in the week ending October 3, U.S. crude oil commercial inventories increased significantly by 8.1 million barrels, and gasoline commercial inventories increased significantly by 7.2 million barrels, far exceeding market expectations. At the same time, the report also showed that in the four weeks ending October 3, average daily gasoline demand in the United States was approximately 8.8 million barrels, a 5.3% decrease from a year ago.

The Department of Energy's report once again confirmed investors' concerns about weakening demand for crude oil due to slowing economic growth in the United States and the world. Oil prices in the New York market fell to an intraday low of $86.05 per barrel, the lowest trading level since December 2007. price.

By the end of the day, the price of light crude oil futures for November delivery on the New York Mercantile Exchange fell by $1.11 to close at $88.95 per barrel. The price of North Sea Brent crude oil futures for November delivery on the International Petroleum Exchange in London fell 30 cents to close at $84.36 per barrel.

Gasoline futures for November delivery on the New York Mercantile Exchange fell 3.3 cents per gallon to close at $2.0298. Heating oil futures fell 1.12 cents per gallon to close at $2.4945. Natural gas futures prices fell 2.6 cents per thousand cubic feet to close at $6.742.