RoydadNaft –  Oil prices hit fresh 2-1/2-month lows on Tuesday as mixed economic data from China offset the impact of Saudi Arabia and Russia extending output cuts.

Brent crude futures were down $1.65, or 1.94%, to $83.53 a barrel as of 0920 GMT while U.S. West Texas Intermediate crude was at $79.21 a barrel, down $1.61, or 1.99%. Both hit their lowest levels since late August.

The premium on front-month loading Brent contracts over ones loading in six months’ time was also at a 2-1/2-month low, indicating market participants are less concerned with current supply deficits.

Expectations of crude run reductions by China-based refiners between November and December could also limit oil demand and exacerbate price declines.

World shares, which often trade in tandem with oil, lost steam on Tuesday as investor enthusiasm about a peak in global interest rates faded. In addition, the U.S. dollar has ticked up from recent lows, making oil more expensive for holders of other currencies.

OPEC+ is unlikely to be in a hurry to undo oil output cuts when its joint ministerial monitoring committee meets on Nov. 26, said Kelvin Wong, senior market analyst at OANDA.