As of the latest update, Brent crude was priced at $72.75 per barrel, while WTI was at $68.89 per barrel, both indicating a rise from their opening values.
The recent change in crude oil inventories mirrored a similar increase from the previous week, which had previously exerted downward pressure on oil prices.
On the previous day, the American Petroleum Institute reported an unexpected yet modest decrease in crude oil inventories, amounting to 777,000 barrels for the week ending November 8. The API also indicated a reduction in gasoline inventories alongside an increase in middle distillates.
Gasoline inventories fell by 4.4 million barrels during the week ending November 8, with production averaging 10.3 million barrels per day.
This was in contrast to a slight inventory increase of 400,000 barrels the week prior, when production averaged 9.7 million barrels daily.
In terms of middle distillates, the authority reported a decrease of 1.4 million barrels for the week ending November 8, with production averaging 5 million barrels per day.
In comparison to the previous week's production of 2.9 million barrels, the most recent production data indicates an output of 5.1 million barrels per day.
Although prices increased on Wednesday, they have since reversed course due to reduced demand projections and indications of sufficient supply. Both OPEC and the IEA predict that the market will remain well-supplied throughout this year and into the next.
Oil is addressing the previously weaker demand forecast narrative put forth by OPEC, which has postponed the reduction of additional production for another month due to concerns about potential negative impacts on prices, according to Priyanka Sachdeva from Phillip Nova in her comments to Reuters.
OPEC has lowered its oil demand forecast for this year to 1.82 million barrels per day, down from 1.93 million barrels per day in the last Monthly Oil Market Report. The total global oil demand is projected to reach 104.0 million barrels per day in 2024, driven by robust transportation fuel demand and sustained economic growth, especially in several non-OECD nations, as stated by OPEC on Tuesday.
In contrast, the IEA has increased its demand forecast for this year but has cautioned about a potential supply surplus anticipated in 2025.