Following the previous weakening, the oil prices improve in the middle of the week.Nevertheless, October recorded the biggest monthly downturn over the past few years. The negative dynamics are said to be related to the market concerns about the global economic slowdown.
Today, December Brent futures were recorded on London ICE Futures at $76.19/bbl, while the January futures changing hands at about $76,40/bbl.
On the NYMEX, WTI oil in December contracts recovered to 66.27/bbl.
These benchmarks dropped by 7.8% and 9.4% over the month respectively.
The driver of the October price plunge is said to be fears of the trade conflict between the USA and China, which could affect global GDP and demand for oil.
The market is waiting for the US Energy Department to release official oil market data later today.
According to API data (voluntary reports of operators of oil petroleum plants, oil tanks and pipelines), US ramped up oil reserves by some 5.69 million bbl over the past week. At the same time, petroleum volumes dropped by 3.5 million bbl and distillates – by 3.1 million bbl. It is worth mentioning, the market experts expect the increase of 3.3 million bbl, 2.4 million bbl respectively, while distillates are forecast to decrease by 2.2 million bbl.