WTI falls to five-month lows below $70.00 on concerns over China’s oil demand

• WTI extends its fall below $70.00, the lowest level since July.
• China has registered inflows of 10.33 million barrels per day (bpd), 10.4% less than in October.
• Oil traders are concerned that OPEC+ has failed to reach unanimous agreement on production targets.
• Weekly unemployment benefit claims will be published on Thursday.

West Texas Intermediate (WTI), a benchmark for US crude oil, is trading around $69.80 on Thursday. WTI prices fall to their lowest since July as investors worry about the growth in oil demand in China and the effectiveness of OPEC+’s voluntary production cut.

According to data published on Thursday by the General Administration of Customs, China, the world’s largest oil importer, has recorded receipts of 10.33 million barrels per day (bpd). This figure represents a decrease of 10.4% compared to the 11.53 million bpd in October and 9.3% less than in the same month of the previous year. This, in turn, has stoked concerns about the Chinese economy and puts some selling pressure on WTI prices.

Separately, U.S. crude oil inventories fell by 4,632,000 barrels in the week ending Dec. 1, down from the previous reading of a 1,609,000 increase, the U.S. Oil and Gas Agency reported Wednesday. Energy Information (EIA).

Oil markets are also unconvinced that OPEC+, which includes OPEC members and allies such as Russia, will be able to deliver on production cuts of 2.2 million bpd in the first quarter of next year. However, Saudi Energy Minister Prince Abdulaziz bin Salman and Russian Deputy Prime Minister Alexander Novak tried to reassure the market this week that the announced supply cuts could be widened or even deepened.

On Thursday, oil traders will focus on weekly US jobless claims data, which is expected to rise by 222,000 for the week ending December 1. Non-farm payrolls will be published on Friday. These events could have a significant impact on the price of WTI, denominated in USD.