Oil down over expected rise in US stocks, OPEC+ uncertainties

By Sibel Morrow

ANKARA (AA) - Oil prices declined on Wednesday over the double whammy of an expected rise in US crude oil inventories and uncertainties ahead of the OPEC+ meeting where the world’s major oil producers will decide on the production volume for December.

International benchmark Brent crude was trading at $83.69 per barrel at 0648 GMT for a 1.21% decrease after closing the previous session at $84.72 a barrel.

American benchmark West Texas Intermediate (WTI) was at $82.58 per barrel at the same time for a 1.58% drop after it ended the previous session at $83.91 a barrel.

Late Tuesday, the American Petroleum Institute (API) announced its estimate of a rise of over 3.6 million barrels in US crude oil inventories relative to the market expectation of a 1.6 million-barrel increase.

The predicted increase in stockpiles signals a drop in crude demand in the US, the world's top oil consumer, putting downward pressure on oil prices.

Prices also dropped due to uncertainties around the OPEC+ meeting on Thursday amid a weak supply-induced energy crunch. However, the group is ignoring US pressure to pump more oil.

Speaking at a press conference at the United Nations Climate Change Conference (COP26) in Glasgow, Scotland, US President Joe Biden signaled out Russia and oil-producing nations for the rise in gasoline prices.

"That is a consequence of thus far the refusal of Russia or the OPEC nations to pump more oil," Biden said.