{"id":8565,"date":"2023-11-07T12:55:00","date_gmt":"2023-11-07T12:55:00","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=8565"},"modified":"2023-11-07T12:55:00","modified_gmt":"2023-11-07T12:55:00","slug":"oil-prices-at-2-1-2-month-lows-as-china-data-offset-supply-cuts","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/8565\/","title":{"rendered":"Oil prices at 2-1\/2 month lows as China data offset supply cuts"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil 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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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While China’s crude oil imports in October showed robust growth\u00a0both year on year and month on month, its total exports\u00a0contracted\u00a0at a quicker pace than expected.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Expectations of\u00a0crude run reductions\u00a0by China-based refiners between November and December could also limit oil demand and exacerbate price declines.<\/p>\n

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\u00a0has ticked up from recent lows, making oil more expensive for holders of other currencies.<\/p>\n

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On the supply side, markets are waiting to see if Saudi Arabia and Russia are ready to rein in production voluntarily\u00a0beyond the end of the year in addition to a broader deal among the OPEC+ producer group.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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.<\/p>\n

Updated on