Chinese Refinery Slowdown, US Output Surge Drive Global Oil Prices Down 5%

Global oil prices fell by nearly 5% Thursday, continuing a nearly two month decline amid rising U.S. oil supply and sluggish Chinese refinery output.

U.S. West Texas Intermediate crude (WTI) prices were down by 4.75% as of 12:40 PM (EST) on Thursday, at $73.02 per barrel.

WTI prices were $93.68 per barrel at the close of business on Sept. 27; current prices reflect a 22% decline over that seven-week period.

The UK-origin Brent crude index was down by 4.80% Thursday ($77.28 per barrel), marking a 18% decline since its Sept. 27 peak.

Despite prior projections of persistently high prices in the wake of OPEC+ production cuts and the outbreak of the Israel-Hamas War, global crude oil prices have followed a downward trajectory in response to increased oil output from non-OPEC+ members and news of slowing consumption in China.

U.S. crude oil stockpiles rose by 3.6 million barrels in the week leading up to Nov. 10, the Energy Information Agency disclosed Wednesday, doubling experts' estimated predictions.

The U.S. has produced record levels of crude oil in 2023, according to official data. Nationwide oil production topped 13 million barrels per day in October for the first time ever.

The U.S. is the world's largest producer of crude oil and natural gas, with a total annual oil output comparable to that of the next largest producers, Russia and Saudi Arabia, combined.

Slowing oil prices are likely to provide a further inflationary cushion; U.S. consumer prices were unchanged in October, the Department of Labor's Bureau of Labor Statistics reported Tuesday.

The U.S. has committed to reducing emissions under the Paris Agreement by 50% relative to 2005 levels by 2030, and achieve national net-zero emissions by "no later than 2050."