US Crude Prices Plunge 5% on Rising Inventories and Industrial Decline

U.S. crude prices plummeted 5% on Thursday, hitting their lowest since early July. The West Texas Intermediate December contract dropped $3.76 to settle at $72.90 a barrel, and the Brent January contract fell $3.76 to settle at $77.42 a barrel. The decline was attributed to a 3.6 million barrel rise in U.S. crude inventories, steady production at a record 13.2 million barrels per day, and a 0.6% drop in U.S. industrial production in October.

In China, crude refining throughput decreased by 2.8% in October, suggesting slowing demand in the world's second-largest economy. The Organization of Petroleum Exporting Countries (OPEC) blamed speculators for the price drop, dismissing negative sentiment as exaggerated, while hedge funds, heavily short on oil futures, are seen as driving the market lower. The outcome of OPEC's Nov. 26 meeting is crucial, as they may seek to address the market's downward trend.