On Wednesday (December 21), international oil prices were under pressure, impacted by the bleak demand outlook, NYMEX crude oil looked at $74.83 in the market outlook. However, U.S. crude oil inventories fell more than expected, and OPEC+ is expected to keep supply tight, slowing down the pace of oil price decline.
At 15:45 Beijing time, NYMEX crude oil futures fell 0.31% to $75.99/barrel; ICE Brent crude futures fell 0.43% to $80.18/barrel.
Data released overnight by the American Petroleum Institute (API) said U.S. crude oil inventories fell by 3.069 million barrels in the week to Dec. 16, while analysts had expected inventories to fall by only 167,000 barrels. Gasoline and distillate stocks rose by 4.511 million barrels and 828,000 barrels, respectively.
“The larger-than-expected decline in oil inventories is a positive, as the supply deficit may worsen again amid the backdrop of the U.S. replenishing its strategic oil reserves,” said Tina Teng, an analyst at CMC Markets.
Meanwhile, Saudi Energy Minister Prince Abdulaziz bin Salman said in an interview with the Saudi state news agency that OPEC+ members exclude politics from the decision-making process and from their assessments and decisions. outside the forecast.
The minister added that while OPEC+’s decision to cut oil production was heavily criticized, it turned out to be the right decision to support market and industry stability. The comments suggest OPEC+ is likely to keep supply tight to support oil prices.
On the hourly chart, NYMEX crude oil prices are hovering around $75.97, which is the 23.6% Fibonacci retracement of the $70.10-$77.76 range. If it is confirmed that this price level is lost, oil prices may drop to the 38.2% Fibonacci retracement level of the above-mentioned range at $74.83.