MMAC: The oil market’s enthusiasm for China’s economic stimulus is waning

Crude oil prices saw a sharp decline as initial enthusiasm about China’s economic stimulus appeared to have died down, replaced by continued gloom over demand in the world’s biggest oil importer. world, according to what Andre Grossi, director of the German company MMAC, told Al. – Economics.

Grossi explained that immediately after the stimulus announcement, indicators rose by almost 2%, but the gains did not continue.

This comes at a time when the energy survey released by the Federal Reserve Bank of Dallas confirmed that some bullish developments may be on the horizon as activity in the oil sector declined in the third quarter amid uncertainty about the future before the November elections.

Russian Deputy Prime Minister Alexander Novak said, “The OPEC+ alliance is not talking about any proposals for changes to its current oil production plan, which expects the group to start adding products the market in December.”

OPEC+ originally planned to start part of the 2.2 million barrels per day of crude oil production cuts starting in October of this year. However, after the drop in oil prices in late August and early September, OPEC+ delayed start to reduce the cuts by two. months, until December 2024. .

Analysts told Al-Eqtisadiah that more downward pressure on oil prices came from Libya, where oil flows are returning to export centers that caused earlier shutdowns… Oil exports and production.

In this context, Alexander Bougal, a consultant to the international company “Energy GB”, said, “The price of crude oil fell for the second day and saw an acceleration in losses on Thursday in what appears to be a sharp correction, like almost all the gains achieved were due to the launch of China’s stimulus plan and the rising tensions in Lebanon.

For her part, Director of the Center for Sustainable Global Finance, Linda Tselina, said that West Texas Intermediate crude oil prices remain under intense selling pressure for the second day in a row and are declining more than the previous levels. their peak in several weeks due to new issues. concerns over global supply increases.

In terms of prices, Brent crude futures fell $2.26, or 3.1%, to $71.20 a barrel, while US West Texas Intermediate crude fell $2.31, or 3.3%, to $67.38 a barrel.