Oil market declined amid US inventory built up; weak Chinese PMI
This surge in production, aimed at replenishing depleted inventories and meeting heightening demand, caught many market participants off guard.
International benchmarks for crude oil fell on Wednesday, 31 January 2024 influenced by sluggish economic activity in China while the market also grappled with an unexpected build in US crude inventories.
The unexpected rise in US commercial crude stocks was attributed to producers intensifying output in response to the frigid weather conditions experienced across parts of the United States. This surge in production, aimed at replenishing depleted inventories and meeting heightening demand, caught many market participants off guard.
Brent crude futures settled down $1.16/barrel or about 1.4%/barrel at $81.71/barrel.
WTI lost $1.97/barrel or 2.5%/barrel to close at $75.85/barrel.