WTI drops to over three-month lows on increased supply, trades near $77.20

• Crude oil prices weaken as the US Dollar continues the winning streak.
• US crude oil stocks rose by nearly 12 million barrels last week.
• EIA anticipates a 300,000 bps decrease in US petroleum consumption in 2023.

Western Texas Intermediate (WTI) rebounds from over three-month low, struggling around $77.20 per barrel during the Asian hours on Wednesday as US Dollar aims to recover the losses registered during the previous week.

However, Crude oil prices took a dip due to indications of increased supply, with industry data revealing a substantial build in United States (US) crude inventories. The downward pressure was further intensified by economic data from China, offsetting the positive effects of Saudi Arabia and Russia's pledge to cut 1.2 million barrels in 2024.

US crude oil stocks surged by nearly 12 million barrels last week, according to figures from the American Petroleum Institute (API). Moreover, the Energy Information Administration (EIA) reported on Tuesday that crude oil production in the United States this year is projected to increase slightly less than previously anticipated, accompanied by a decline in demand.

Additionally, the EIA announced a delay in the release of weekly inventory data until the next week. The agency now anticipates a 300,000 barrels per day decrease in total petroleum consumption in the US this year, reversing its earlier forecast of a 100,000 barrels per day increase.

Organization of Petroleum Exporting Countries (OPEC) crude exports have risen by approximately 1 million barrels per day since hitting their low point in August, driven by the seasonally lower domestic demand in the Middle East.

Crude oil prices encounter a hurdle with mixed economic data emerging from China, the second-largest consumer of oil. In October, China experienced robust growth in oil imports, signaling a positive trend. However, the simultaneous contraction in the total exports of goods and services exceeded expectations, amplifying concerns about a potential decline in global energy demand.