SunSirs: Analysis of the Impact of International Crude Oil Price Declines on November 10

On November 10, international crude oil futures closed lower. The settlement price for the December contract of U.S. WTI crude oil was $86.04 per barrel, down $0.81 (0.9%). The settlement price for the January contract of Brent crude oil was $91.49 per barrel, down $1.08 (1.2%).

The notable decline in international crude oil futures—with the U.S. WTI December contract falling 0.9% and the Brent January contract dropping 1.2%—has exerted a generally bearish influence on both spot and futures prices for crude oil, as bearish sentiment in the market has intensified.

Crude oil is the primary feedstock for asphalt production; therefore, a drop in oil prices weakens the cost-side support for asphalt. On November 10, the main asphalt futures contract (2701) closed at 4,234 RMB/ton, a decrease of 163 RMB/ton. Both futures and spot prices for asphalt are under pressure, representing a generally bearish factor.

Gasoline is a direct downstream product of crude oil. A decline in crude oil prices weakens the cost support for gasoline, exerting a generally bearish influence on both its spot and futures prices.

Diesel is a downstream refined product of crude oil. The drop in crude oil prices reduces the cost-side support for diesel, which also acts as a generally bearish factor for both its spot and futures prices.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.