Oil skids, China slows imports after Saudi Arabia cuts prices Reuters

© Reuters. Photo File: The sun sets behind a crude oil pump jack on a drill pad in the Permian Basin in Loving County.

Florence Tan

Singapore (Reuters)-Oil prices fell by more than 1% on Monday after Saudi Arabia hit its lowest since July after the biggest monthly price cuts and pandemic for Asian supplies in five months subsided optimism about demand recovery.

Brent oil () fell 1.3% to $42.11 a barrel, a 55 cents (GMT 0642), then fell to a low of $41.51 since July 30th.

US West Texas heavy oil () fell 64 cents (1.6%) to $39.13 per barrel after falling to $38.55, the lowest since July 10.

The world is brimming with crude oil and fuel despite cuts in supply from the Organization of Petroleum Exporting Countries (OPEC) and allies known as OPEC+ and government efforts to boost the global economy and oil demand. As a result, refineries have cut fuel production, and oil producers such as Saudi Arabia cut prices to offset the decline in demand for crude oil.

Howie Lee, economist at OCBC Bank in Singapore, said, “The sentiment has become bitter and there may be some sales pressure going forward.”

Monday’s Labor Day holiday marks the traditional end of the peak summer demand in the U.S., which has renewed interest in investors’ current sluggish fuel demands from the world’s largest oil users.

China, the world’s largest oil importer that has supported prices with record purchases, slowed intake in August and increased product exports, according to customs data on Monday.

READ  Existing dwelling income surge almost 21% in June – a document regular obtain

Keisuke Sadamori, Director of Energy Markets and Security at the International Energy Agency, told Reuters: “There is a lot of uncertainty about the Chinese economy and its relations with major developed countries, the United States and nowadays Europe.” Said.

“It’s not an optimistic situation to cast a shadow over the growth prospects.”

Saudi Arabia, the world’s number one oil exporter, cut its official selling price for Arab light crude oil in October since May, indicating that demand remains weak. Asia is the largest market in Saudi Arabia by region.

In August, the OPEC+ group eased production cuts to 7.7 million barrels per day after global oil prices improved from an all-time low due to declining fuel demand from the coronavirus pandemic.

Oil is also under pressure as US companies increase drilling for new supplies since the recent oil price recovery.

Last week, US energy companies added oil and rigs for the second time in the last three weeks. Baker Hughes Co (N:) on Friday.

disclaimer: Fusion media We would like to inform you that the data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and Forex prices are provided by the market maker and not the exchange, so prices may not be accurate and may differ from actual market prices. In other words, price is an indicator and is not suitable for trading purposes. Therefore, Fusion Media is not responsible for any loss of transactions that may arise from the use of this data.

READ  Governor suggests damaging prices in the toolbox but no strategies to use

Fusion media Or, anyone associated with Fusion Media will not be liable for any loss or damage as a result of reliance on information, including data, quotes, charts and buy/sell signals contained on this website. Please be fully aware of the risks and costs associated with trading financial markets. This is one of the riskiest forms of investment possible.

You May Also Like

About the Author: Max Grant

Devoted web lover. Food expert. Hardcore twitter maven. Thinker. Freelance organizer. Social media enthusiast. Creator. Beer buff.

Leave a Reply

Your email address will not be published. Required fields are marked *