Oil Extends Losing Streak, Brent Crude Hits Lowest Level Since June
West Texas Intermediate declined to $69.57 per barrel, falling 7.78% over the last two weeks.
Oil extended declines to hover near a five-month low as the global benchmark, Brent, settled at $74.31, the its lowest level since June. West Texas Intermediate experienced a decline, to $69.57 per barrel. This marks an 7.78% fall over the last two weeks.
"Non-OPEC supply has been rising over the past few months, particularly from the U.S. and Brazil. U.S. crude output are at record highs, while exports have crossed 6 million barrels per dollar," Kotak Securities said in a note.
Despite OPEC+ fresh output curbs of around 0.9 mbpd, investors are skeptical about actual reduction in barrels owing to seasonal weakness in domestic demand, according to the note.
Iranian supplies have also been rising and prospects of another 200 kbpd from Venezuela remains. Meanwhile, demand outlook remains bleak despite Fed rate cut optimism, Kotak added.
China recovery failed to gain traction while western factory activity continue to be in contraction and is flashing recessionary signs for 2024, weighing down on prices
"Oil prices fell to $74.74 falling nearly 4% overnight to their lowest settlements since June due to concerns over global fuel demand, despite supply cuts from the OPEC+ countries," said Ritesh Bhanshali, vice president, Mecklai Financial Services Ltd.
"The U.S. crude oil production reached a record high of 13.0 million barrels per day, according to the U.S. EIA report released on Wednesday. The potential economic challenges in China pose a threat to crude oil demand," Rahul Kalantri, VP Commodities, Mehta Equities said.
"Crude oil finds support in the range of $69.35–68.80, with resistance levels at $71.10-71.70 for the current session. In INR, crude oil has support at Rs 5,740-5,660 and faces resistance at Rs 6,850-5,930," Kalantri added.
