Brent Crude Oil : dropped below $90 per barrel, a dramatic reversal from its daily highs of $93.4 as investors weighed a weakening global economic outlook and a stronger dollar against tighter supplies from Russia and OPEC.
Fears mount that an aggressive tightening from major central banks worldwide would derail global growth and dampen energy demand. Putting a floor under prices were concerns of further disruptions to supplies after President Vladimir Putin announced a partial military mobilization in Russia.
Meanwhile, in separate statements, the heads of energy giants Saudi Aramco and Crescent Petroleum flagged underinvestment in the oil sector as a significant stumbling block for production and the main reason for the global energy crisis.
In other news, EIA data showed that the US Brent crude oil inventories rose 1.142 million barrels last week, below market expectations of a 2.161 million increase
While WTI crude futures bottomed around $83 per barrel, a dramatic reversal from its daily highs of $86.6 as investors weighed a weakening global economic outlook and a stronger dollar against tighter supplies from Russia and OPEC.
Fears mount that an aggressive tightening from major central banks worldwide would derail global growth and dampen energy demand.
However,US crude oil inventories rose by 1.142 million barrels in the week ended September 16th, below market expectations of a 2.161-million-barrel increase, according to EIA’s latest report.
That was largely due to another big release of barrels from US strategic reserves, which this past week came to 6.9 million barrels. Also, crude stocks at Cushing, Oklahoma, went up by 0.343 million barrels and gasoline stocks climbed by 1.569 million barrels, versus forecast for a 0.431 million draw.
Meanwhile, distillate stockpiles, which include diesel and heating oil, surged by 1.231 million barrels, more than forecast of a 0.42 million injection
