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HOUSTON, Nov 9 – The Brent crude oil benchmark finished above USD 80 a barrel on Thursday, after demand concerns and a fading war-risk premium triggered a sell-off earlier this week.

Brent crude futures settled at USD 80.01 a barrel, a gain of 47 cents, or 0.59%. US West Texas Intermediate (WTI) crude futures finished at USD 75.74 a barrel up 41 cents or 0.54%.

Late in Thursday’s trading, comments by US Federal Reserve Chairman Jerome Powell indicating possible future interest rate increases shook stock and crude oil markets’ hopes for strong demand.

“There’s a macroeconomic headwind affecting markets today,” said John Kilduff, partner with Again Capital LLC.

Market fundamentals dominated trader sentiments through much of Thursday as fears of Middle East supply disruptions have eased, said Jim Burkhard, vice president and head of research for oil markets at S&P Global Commodity Insights.

“The onset of the Israel-Hamas war does fuel volatility and bring additional risks, but it has not affected underlying oil market fundamentals,” Burkhard said. “Oil prices have remained below where they were in late September – a week before the Hamas attack. Strong oil market fundamentals are prevailing over any fears at the moment.”

Brent is nearly USD 20 a barrel lower than its September peak.

Data from China on Thursday showed policymakers struggling to control disinflation, casting doubt over the chances of a broad-based economic recovery in the world’s biggest commodity consumer.

Earlier in the week customs data showed that China’s total exports of goods and services contracted faster than expected.

Demand indicators also imply weakness in the United States.

US crude oil inventories increased by 11.9 million barrels over the week to Nov. 3, sources said, citing American Petroleum Institute figures.

If confirmed, this would represent the biggest weekly build since February. The US Energy Information Administration (EIA), however, has delayed the release of weekly oil inventory data until Nov. 15 for a system upgrade.

Global markets, however, were upbeat on Thursday on the belief that major central banks have completed their rate hikes. High interest rates raise the cost of borrowing, dampening demand in markets, including oil.

Both OPEC and the International Energy Agency (IEA) are due to offer their view on the state of oil demand and supply fundamentals next week.

OPEC is set to meet at the end of the month to discuss output policy for 2024.

(Reporting by Erwin Seba in Houston; Additional reporting by Natalie Grover in London, Andrew Hayley in Beijing, and Jeslyn Lerh in Singapore; Editing by Kirsten Donovan, Barbara Lewis, David Evans, and Diane Craft)

Nov 8 – Gold prices retreated for a third straight session on Wednesday as investors looked for fresh cues on the US central bank’s interest rate stance, while palladium hit a five-year low.

Spot gold was down 1% at USD 1,947.89 per ounce by 3:01 p.m. ET (2001 GMT), logging its biggest daily drop since Oct. 2. US gold futures settled 0.8% lower at USD 1,957.8.

Silver fell 0.5% to USD 22.52 per ounce.

“Traders will start looking at economic data and potential actions from the US central bank. Gold will react based on whatever the data is showing,” said Daniel Ghali, commodity strategist at TD Securities.

“It is hard to see a catalyst for further upside in gold without a notable deterioration in the data.”

A slew of Federal Reserve officials on Tuesday maintained a balanced tone on the central bank’s next decision, but noted they would focus on more economic data and the impact of higher long-term bond yields.

Fed Chair Jerome Powell is set to speak at 2:00 p.m. ET on Thursday.

Gold is sensitive to rising US interest rates, as they increase the opportunity cost of holding the non-yielding asset.

“The risk premium gold gained from the Israel-Hamas war is eroding. If you see an escalation in the conflict, then gold can get some momentum behind it,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Bullion gained over 7% in October as the conflict in the Middle East boosted safe-haven demand.

Elsewhere, palladium hit its lowest levels since 2018 at USD 1,007.73 earlier in the session and was down 0.5% at 1,050.06. Platinum eased 2.8% to USD 866.31.

In the palladium market, “demand is evaporating at a pretty fast pace led by smaller production of internal combustion engines and it is also being substituted with platinum in auto catalysts components,” Ghali added.

Both metals are used in emissions-controlling devices in cars.

(Reporting by Ashitha Shivaprasad and Anushree Mukherjee in Bengaluru; Editing by Shailesh Kuber and Krishna Chandra Eluri)

NEW YORK, Nov 8 – Oil prices slid over 2% on Wednesday to their lowest in more than three months on concerns over waning demand in the US and China.

Brent crude futures settled down USD 2.07, or 2.5%, to USD 79.54 a barrel. US crude lost USD 2.04, or 2.6%, to USD 75.33. Both benchmarks hit their lowest since mid-July.

“The market is clearly less concerned about the potential for Middle Eastern supply disruptions and is instead focused on an easing in the balance,” ING analysts Warren Patterson and Ewa Manthey said in a note to clients, referring to crude supply conditions.

Also weighing on prices, US crude oil stocks rose by almost 12 million barrels last week, market sources said late on Tuesday, citing American Petroleum Institute figures.

If confirmed, that would be biggest build since February. However, the US Energy Information Administration (EIA) has delayed release of weekly oil inventory data, usually on Wednesdays, until Nov. 15 to complete a systems upgrade.

US crude production will rise this year by slightly less than expected but petroleum consumption will fall by 300,000 barrels per day (bpd), the EIA said on Tuesday, reversing its previous forecast of a 100,000-bpd increase.

Data from China, the world’s biggest crude oil importer, showed its total exports of goods and services contracted faster than expected, feeding worries about the energy demand outlook.

In the euro zone, data showing falling retail sales also highlighted weak consumer demand and the prospect of recession.

“The meltdown we’ve seen in prices is reflecting two things: concerns about the global economy hitting a brick wall based on data out of China and also a sense of confidence that the war in Israel and the Gaza Strip is not going to impact supply,” said Phil Flynn, analyst at Price Futures Group.

Still, China’s October crude oil imports showed robust growth and its central bank governor said the world’s second-biggest economy is expected to hit its gross domestic product growth target this year. Beijing has set a target of about 5% growth.

Analysts from Goldman Sachs estimated seaborne net oil exports by six countries from oil producer group OPEC will remain only 600,000 bpd below April levels. OPEC has announced cumulative production cuts amounting to 2 million bpd since April 2023.

Russia, a part of the producer groups known as OPEC+, is considering lifting an export ban on some grades of gasoline, Interfax news agency quoted Energy Minister Nikolai Shulginov as saying.

Moscow introduced a ban on fuel exports on Sept. 21 to tackle high domestic prices and shortages. The government eased restrictions on Oct. 6, allowing diesel exports by pipeline, but kept measures on gasoline exports.

Barclays lowered its 2024 Brent crude price forecast by USD 4 to USD 93 a barrel.

(Reporting by Stephanie Kelly, Paul Carsten and Muyu Xu; Editing by Marguerita Choy and David Gregorio)

Nov 8 – Oil prices fell on Wednesday to their lowest in over three months, after industry data showed a steep build in US crude supplies, while mixed Chinese economic data raised worries about global demand for crude.

Brent crude futures dropped 25 cents to USD 81.36 a barrel by 0001 GMT, while US crude futures fell 35 cents to USD 77.02 a barrel. Both declined to the lowest since July 24 in early Asia trade.

US crude oil stocks rose by almost 12 million barrels last week, market sources said late Tuesday, citing American Petroleum Institute figures.

The US Energy Information Administration (EIA) will delay the release of weekly inventory data until the week of Nov. 13.

Crude oil production in the United States this year will rise by slightly less than previously expected while demand will fall, the EIA said on Tuesday.

The EIA now expects total petroleum consumption in the country to fall by 300,000 bpd this year, reversing its earlier forecast of a 100,000 bpd increase.

Data in China, the world’s biggest consumer of oil, also raised doubts about the demand outlook.

Crude oil imports by the world’s second-biggest economy in October showed robust growth but its total exports of goods and services contracted at a quicker pace than expected, adding to fears of lower global energy demand.

Adding to pressure on oil prices was a modest recovery in the US dollar from recent lows, which makes oil more expensive for holders of other currencies.

(Reporting by Stephanie Kelly; Editing by Shri Navaratnam)