Oil declines as US crude stockpiles rise

As reported by Bloomberg, oil flopped amid the release of an industry report that revealed an increase in crude oil stockpiles in the US. Investors were concerned about a decline in demand for oil amid slowing growth.

West Texas Intermediate crude oil slides below $85 a barrel on demand fear after rising 0.9% in session on Tuesday. The American Petroleum Institute highlighted that U.S. crude inventories grew by 4.5 million barrels last week, citing sources. The U.S. government report is expected on Wednesday. Oil prices will drop amid increasing fears over the product supplies including diesel. 

Sean Lim, an oil-and-gas analyst at RHB Investment Bank Bhd, noted that there was tightness seen in the market ahead of winter. Now, as the EU is debating an embargo on Russian crude oil, it’s especially strong. 

Macroeconomic issues are emerging, overshadowing the outlook for energy usage. The economy of the leading crude oil importer worldwide, China, slowed in October. That’s the conclusion based on Bloomberg's index of early indicators. It proves that the GDP growth seen last month was not able to change the gloomy economic outlook.