© Reuters. A pump belonging to a French oil company works in a field outside the Sodron region in France on February 6, 2023. Photography: Pascal Rossignol – Reuters.
SINGAPORE (Reuters) – It fell in early Asian trade on Monday as economic concerns in China weighed on expectations for fuel demand, although Brent crude remained above $90 a barrel, supported by tight supplies after Russia and Russia extended supply cuts.
By 0022 GMT, Brent crude fell 49 cents, or 0.5 percent, to $90.16 per barrel, while US West Texas Intermediate crude recorded $86.77 per barrel, down 74 cents, or 0.9 percent.
“Concerns about Chinese economic growth affected sentiment in various commodities,” ANZ analysts said in a note.
They added, “This move was exacerbated by the strength of the US dollar, which kept investors’ appetite low,” referring to the US currency, which has risen for eight consecutive weeks.
Both contracts rose in the past two weeks and Brent settled at its highest levels since November on Friday, after Saudi Arabia and Russia announced last week that they would extend voluntary supply cuts of a combined 1.3 million barrels per day until the end of the year.
The International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC) are scheduled to issue their monthly reports this week.
“Any sign of strong demand from the oil market reports issued by the International Energy Agency and OPEC is likely to push oil prices higher,” ANZ analysts said.
(Prepared by Hassan Ammar for the Arabic Bulletin)
2023-09-11 01:08:00
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