COM - U.S. oil prices end at lowest in a month weighed by demand worries

2023-08-23 17:50:44 ET

• U.S. crude oil futures fell to four-week lows Wednesday, as troubles in China's property sector add to concerns over lackluster economic data from the world's second-largest oil consumer, but a bigger than expected weekly drop in U.S. crude supplies help ease the price decline.
• The weekly EIA report showed a bullish 6.1M-barrel decline in the headline number on U.S. crude oil inventories, compared to consensus expectations for a 2.8M-barrel draw, but investors also saw bearish signs in the report, showing domestic crude production rise to a fresh three-year high at 12.8M bbl/day.
• Also, implied gasoline demand came in below 9M bbl/day for the sixth week in the past seven, a weak showing for the summer driving season.
• Front-month Nymex crude ( CL1:COM ) for October delivery closed -0.9% to $78.89/bbl, its lowest settlement since July 26, and front-month October Brent crude ( CO1:COM ) finished -1% to $83.21/bbl, its lowest closed since August 2; it was the third straight decline for both benchmarks.
• ETFs: ( NYSEARCA: USO ), ( BNO ), ( UCO ), ( SCO ), ( USL ), ( DBO ), ( DRIP ), ( GUSH ), ( USOI ), ( NRGU )
• The energy sector ( XLE ) was the only group to finish in negative territory, -0.2% .
• "The rally in oil appears to have run out of steam for now ," ING analysts said. "China's macro issues, along with a growing expectation that maybe the U.S. Fed is not done with its tightening cycle have weighed on oil more recently."

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