Oil closes lower amid fears of weaker demand

Oil drilling rigs

Oil prices closed lower today, Nov. 2, after data showed an increase in US oil inventories for the second week in a row and industrial activity contracted in the world’s largest economies, raising concerns over demand.

Brent crude futures for January delivery (the most active) fell by 0.45%, or 39 cents, to $84.63 a barrel, after rising to $87.24 during the session.

WTI crude for December delivery fell by 0.7%, or 58 cents, to record $80.44 per barrel, after increasing to $83.42 during trading.

According to the US Energy Information Administration, oil inventories increased by about 800,000 barrels during the week ended Oct. 27, after rising by 1.4 million barrels in the previous week.

Data from the Institute for Supply Management showed that the manufacturing purchasing managers’ index (PMI) fell by 2.3 points to 46.7 points during October, with industrial activity contracting in the US for the 12th month in a row, with new orders and employment declining.

The Caixin China industrial PMI fell to 49.5 points in October compared to September's reading of 50.6 points, which is consistent with official data released on Oct. 31, raising doubts about the extent of the recovery of the second largest economy in the world.