Daily crude processing in China, the biggest oil importer, fell to its lowest in July since May 2020
17 August 2021 - 13:03
byShadia Nasralla
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
A VLCC oil tanker is seen at a crude oil terminal in Ningbo-Zhoushan port, Zhejiang province, China. Picture: REUTERS
London — Oil prices fell on Tuesday, with both contracts heading for a fourth straight session of losses, weighed down by a weak demand picture in Asia and Opec and its allies saying the market does not need more crude.
Brent crude was down 26c, or 0.3%, at $69.25 per barrel as of 9.18am GMT, after rising as high as $69.77 earlier in the session.
US West Intermediate crude (WTI) slid 31c, or 0.4%, to $66.98 a barrel, after reaching $67.66 earlier.
On the demand side, daily crude processing in China, the world's biggest oil importer, fell to its lowest in July since May 2020 as independent plants slashed production amid tighter quotas, high inventories and weakening profits.
China’s factory output and retail sales growth also slowed sharply and missed expectations in July, as new Covid-19 outbreaks and floods disrupted businesses.
Hedge funds sold petroleum last week for the sixth time in eight weeks as resurgent coronavirus infections in China, Europe and North America dampened hopes of a rapid resumption in long-distance air travel.
Japan was set to extend its state of emergency in Tokyo and other regions to September 12 and widen curbs to seven more prefectures.
On the supply side, US shale oil output is expected to rise to 8.1-million barrels per day (bpd) in September, the highest since May 2020, according government data.
Last week, US President Joe Biden's administration urged Opec+, which groups members of the oil cartel and other producers such as Russia, to boost oil output to tackle rising gasoline prices.
But four sources told Reuters that the group believes oil markets do not need more crude than they plan to release in the coming months.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Weaker oil demand in Asia pushes prices down
Daily crude processing in China, the biggest oil importer, fell to its lowest in July since May 2020
London — Oil prices fell on Tuesday, with both contracts heading for a fourth straight session of losses, weighed down by a weak demand picture in Asia and Opec and its allies saying the market does not need more crude.
Brent crude was down 26c, or 0.3%, at $69.25 per barrel as of 9.18am GMT, after rising as high as $69.77 earlier in the session.
US West Intermediate crude (WTI) slid 31c, or 0.4%, to $66.98 a barrel, after reaching $67.66 earlier.
On the demand side, daily crude processing in China, the world's biggest oil importer, fell to its lowest in July since May 2020 as independent plants slashed production amid tighter quotas, high inventories and weakening profits.
China’s factory output and retail sales growth also slowed sharply and missed expectations in July, as new Covid-19 outbreaks and floods disrupted businesses.
Hedge funds sold petroleum last week for the sixth time in eight weeks as resurgent coronavirus infections in China, Europe and North America dampened hopes of a rapid resumption in long-distance air travel.
Japan was set to extend its state of emergency in Tokyo and other regions to September 12 and widen curbs to seven more prefectures.
On the supply side, US shale oil output is expected to rise to 8.1-million barrels per day (bpd) in September, the highest since May 2020, according government data.
Last week, US President Joe Biden's administration urged Opec+, which groups members of the oil cartel and other producers such as Russia, to boost oil output to tackle rising gasoline prices.
But four sources told Reuters that the group believes oil markets do not need more crude than they plan to release in the coming months.
Reuters
JSE firms as global markets remain wary of Delta variant
JSE will feel squeeze as China tightens tech rules
Market data — August 16 2021
MARKET WRAP: JSE slips amid weak Chinese data and fresh virus outbreaks
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Asian shares fall as worries over virus variant grow
Oil pares earlier gains
Gold slips as dollar firms
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.