Business News Asia
Crude oil futures closed lower on Wednesday (Nov. 9) after U.S. crude inventories rose against analysts’ expectations.
- WTI crude futures fell $3.08, or 3.5%, at $85.83 a barrel.
- BRENT crude futures were down $2.71, or 2.8%, at $92.65 a barrel.
The U.S. government’s Energy Information Administration (EIA) reported last night that crude oil inventories in the U.S. rose by 3.9 million barrels last week. In contrast to the expectations of analysts, who had expected a decline of 700,000 barrels.
The American Petroleum Institute (API) previously reported that U.S. crude oil inventories rose by 5.618 million barrels last week.
Oil markets were also weighed down by concerns that China will continue to take strict measures to contain the spread of the coronavirus following outbreaks in several cities. Millions of people in China’s Guangzhou province had to get tested for the coronavirus on Sunday after the number of new infections exceeded 2,000 for two days, the report said.
New infection with COVID-19 has been detected in Beijing, the capital of China. The number of new infections rose to the highest level in more than five months, and residents in the Chaoyang district in central Beijing were placed under lockdown in more than 10 buildings. .
As China continues to battle the new wave of COVID-19, many economically important cities, including Beijing, have dampened hopes that strict measures against COVID-19 will be eased soon.
In addition, the strength of the dollar is putting pressure on the oil market. It makes crude oil contracts settled in dollars more expensive for investors holding other currencies.
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