Crude Oil Prices Fall Amid Concerns Over Weakening Demand

Crude oil prices experienced a notable drop during Thursday's trading, marking the second consecutive day of declines. This downturn comes as market fears intensify over weakening demand for crude oil from the world's two largest consumers, China and the United States.

Crude Oil Price Performance Today:

U.S. oil contracts decreased by 1.28%, with the price per barrel falling to approximately $70.89. Similarly, Brent crude contracts declined by 1.22%, reaching $74.27 per barrel.

Factors Driving the Decline in Crude Oil Prices:

The decline in crude oil prices is primarily driven by growing concerns about slowing oil demand from China and the United States, the largest global consumers of oil.

According to data from the General Administration of Customs of China, the country's crude oil imports dropped by 9% year-on-year in October 2024, with the daily import rate totaling 10.53 million barrels. This is down from 11.07 million barrels in September 2024 and 11.53 million barrels in October 2023, continuing a six-month downward trend.

Additionally, U.S. oil prices were impacted by negative data regarding oil inventories. According to the Energy Information Administration (EIA), U.S. oil inventories increased by 2.1 million barrels during the week ending November 1, surpassing expectations of a 1.8 million barrel increase. This increase follows a previous decline of 0.5 million barrels, raising concerns about reduced U.S. demand for crude oil.

Overview of Other Commodities:

In other commodities, heating oil contracts dropped by 0.96%, settling at $2.2481, while gasoline contracts fell by 0.88%, at approximately $2.0174. Natural gas contracts also saw a slight decrease of 0.15%, with prices reaching $2.743 per million British thermal units.

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