OIL FUTURES: Crude slide extends amid US demand woes, easing global supply risks

Crude oil futures finished a fourth straight session lower Dec. 7 as US energy demand woes blunted an expected inventory draw.

NYMEX January WTI settled down $2.24 at $72.01/b, while ICEC February Brent declined $2.18 to $77.17/b.

US commercial crude stocks declined 5.19 million barrels to 413.9 million barrels in the week to Dec. 2, US Energy Information Administration data showed Dec. 7, putting stocks 9% behind the five-year average for this time of year and at the lowest outright level since mid-April.

The draw, albeit counter-seasonal, was below recent market expectations, with American Petroleum Institute data late Dec. 6 showing a 6.43-million-barrel draw in the week to Dec. 2.

Refinery crude demand unexpectedly fell 53,000 b/d to 16.59 million b/d, the EIA said, adding that an unseasonably weak appetite for transportation fuels contributed to large builds in both gasoline and distillate inventories over the same period.

"This report shows the economy is clearly weakening and does not give energy bulls any reasons to buy into this weakness," OANDA senior market analyst Edward Moya said in a note.

NYMEX January RBOB settled down 7.19 cents at $2.0772/gal, while January ULSD fell 13.50 cents to $2.7805/gal.

Meanwhile, easing global supply risks added further downside pressure to oil prices, analysts said.

"The savage meltdown in oil prices is associated with a dramatic repricing of supply risks," TD Securities senior commodity strategist Daniel Ghali said in a note, adding that "Russian exports have notably risen ahead of the sanctions as firms rushed to secure supplies ahead of potential disruptions. Several OPEC+ under producers have made progress with respect to the operational risks that have constrained their output."

Russia's seaborne crude exports were little changed in November at just over 3 million b/d after flows to India surged to a record high, absorbing barrels displaced from Europe where imports sank to all-time lows ahead of the EU's Dec. 5 import ban and G7 price cap, according to tanker tracking data.

Platts assessed Russian Urals crude loading at Primorsk at $43.245/b Dec. 7, well below the $60/b cap implemented Dec. 5.