Oil prices weakened amid poor Chinese economic data, US rate hikes.
US crude inventories went down by 6 million barrels last week spurred by strong exports and higher refining run rates, per the Energy Information Administration (EIA).
International benchmarks for crude oil dropped on Wednesday, 16 August 2023 as China’s depressed economic forecast overshadowed the large drawdown in US crude stockpiles, while the possibility of extended interest hikes from the FED weighed on the commodity.
US crude inventories went down by 6 million barrels last week spurred by strong exports and higher refining run rates, per the Energy Information Administration (EIA). However, the oil market reacted to news that the FED minutes were divided over the necessity of extended interest lifts, raising caution among investors.
On the other hand, China’s disparaging economy remained the key talking point as retail sales, industrial output and investment numbers all staggered to meet expectations, halting any positive growth in the oil market.
Brent crude dipped by $1.44 or 1.7% to conclude at $83.45/barrel.
US West Texas Intermediate edged down by $1.61 or 2%, to $79.38/barrel.