London, Friday, 24 February 2023
On Friday, WTI oil futures decreased more than 1% to about $74 per barrel as chances of tighter global supplies were offset by lingering worries about a recession-driven decline in demand.
Unexpectedly strong US economic data stoked fears of further Federal Reserve interest rate increases that could hurt demand at a time when stockpiles are still growing.
The US inventories increased by 7.648 million barrels to 850.6 million in the week ending February 17th, the highest amount since September, according to the most recent EIA report data.
Russia declared its intention to reduce oil exports from its western ports by up to 25% in March, going beyond its previously announced production curbs of 500,000 barrels per day, in an effort to keep prices in check.
In addition, investors anticipate that China's oil shipments will reach a record high in 2023 as a result of the nation's growing need for transportation fuel and the start-up of new refineries.
The US average is expected to lose over 3% for a second consecutive week.
(Written by: The Decision Maker - Finance and Energy editors)
