Crude oil prices fell 1.84% to ₹6,736 on profit-taking, despite continued support from US sanctions on Russian oil supplies. The US Treasury Department imposed sanctions on Gazprom (MCX:GAZP) Neft, Surgutneftegaz and 183 vessels in Russia’s shadow fleet, which could cut Russian oil exports by up to 800,000 barrels per day (bpd). However, lower oil imports from China in 2024 mitigated the impact of supply concerns.
US crude inventories fell by 959,000 barrels last week to 414.6 million barrels, EIA data showed. Amid cold weather, stocks at Cushing, Oklahoma, fell by 2.5 million barrels, the lowest since 2014. This was an increase of 6.3 million barrels and 6.1 million barrels, respectively.
U.S. crude oil production hit a record 13.46 million barrels in October, while demand for petroleum products hit 21.01 million barrels, the highest level since August 2019. Despite strong U.S. production and demand, slower-than-expected demand growth in China continues to weigh on market sentiment.
