Oil prices hit a 3-month low

Specifically, Brent oil price decreased by 2.07 USD, equivalent to 2.5%, to 79.70 USD/barrel. US WTI oil prices fell by 2.04 USD, equivalent to 2.6%, to 75.33 USD.

According to analysts, oil prices fell sharply in the context of weakening global economic prospects and slowing demand.

Although China increased its oil imports in October, its total exports of goods and services decreased at a faster pace than expected. This shows that the Chinese economy has not shown signs of recovery as expected, raising concerns that oil consumption demand will weaken.

According to a recent Reuters poll, compared to the same period last year, China's USD exports decreased by 6.4% in October.

The US Energy Information Administration (EIA) has just issued a forecast that the country's total petroleum consumption will decrease by 300,000 barrels/day this year, contrary to the previous forecast of an increase of 100,000 barrels/day.

Also putting pressure on prices is the fact that US crude oil inventories increased by nearly 12 million barrels in the week ended on November 3, nearly 9 times compared to the inventories of the previous week, according to data from the American Petroleum Institute.

Along with that, oil prices are falling due to concerns about a warmer winter than expected that could reduce energy and fuel demand.

On the supply side, analysts from Goldman Sachs estimate that oil exports by sea of the six OPEC countries will be only 600,000 barrels/day lower than in April. OPEC has announced a production cut of up to 2 million barrels/day since April this year.

In another development, Moscow is considering lifting an export ban on some types of gasoline. Barclays has lowered its forecast for Brent oil prices in 2024 by 4 USD to 93 USD/barrel.