Oil prices recorded their lowest levels in two and a half months, on Tuesday, as mixed economic data from China overshadowed the impact of Saudi Arabia and Russia extending production cuts.
The premium for Brent crude contracts loaded in the first months over those loaded within six months also reached its lowest level in two and a half months, indicating that market participants are less concerned about the current supply shortfall.
While China’s crude oil imports in October showed strong growth on an annual and monthly basis, its total exports contracted faster than expected.
But expectations of cuts in crude oil consumption by refiners in China between November and December could also limit oil demand and exacerbate falling prices.
Global stocks, which often trade alongside oil, lost ground on Tuesday, as investor enthusiasm about peak global interest rates faded.
In addition, the US dollar has risen from recent lows, making oil more expensive for holders of other currencies.
On the supply side, markets are waiting to see whether Saudi Arabia and Russia are prepared to voluntarily curb production after the end of the year, in addition to a broader agreement between the OPEC+ producer group.
“Looking ahead to 2024, Saudi Arabia will likely find it difficult to withdraw production cuts at the end of this year – after all, any expansion in Saudi oil production would generate a supply oversupply,” Commerzbank analysts said in a note. In the first half of next year.”
Market movements
By 16:10 GMT, Brent crude futures fell $2.50, or 2.95 percent, to $82.67 per barrel, while US West Texas Intermediate crude fell $2.47, or 3.08 percent, to $78.34 per barrel.
Both recorded their lowest levels since late August.
2023-11-07 16:15:25
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