Categories: Economic News

Oil loses more than $1 as China data disappoints

FILE PHOTO: A pump dam is seen shrouded in steam during sunset at the PetroChina oil field in Karamay, Xinjiang Uyghur Autonomous Region, January 5, 2011. REUTERS/Stringer

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  • China’s July refinery output is lowest since March 2020: data
  • Saudi Aramco ready to maximize production to 12 million bpd – CEO
  • US Gulf of Mexico production resumes after repairs

SINGAPORE, Aug 15 (Reuters) – Oil prices fell for a second session on Monday as weak economic data from China raised concerns about demand in the world’s biggest crude importer, while the head of the world’s top exporter world, Saudi Aramco said it was ready to increase. exit up

Brent crude futures fell $1.14, or 1.2%, to $97.01 a barrel at 0631 GMT after falling 1.5% on Friday. U.S. West Texas Intermediate crude was at $91.03 a barrel, down $1.06, or 1.2%, after falling 2.4% in the previous session.

China’s economy unexpectedly slowed in July, while refinery output fell to 12.53 million barrels a day, its lowest level since March 2020, government data showed. Read more

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“Official data suggests oil demand is weakening as domestic logistics and consumer demand are deterred by record oil pump prices,” said Heron Lin, an economist at Moody’s Analytics.

Oil demand could remain on a downward trend for the rest of the year as the threat of COVID-19 restrictions encourages precautionary savings and lowers oil consumption, he added.

Saudi Aramco is ready to increase crude output to its maximum capacity of 12 million bpd if requested by the government of Saudi Arabia, Chief Executive Amin Nasser told reporters on Sunday.

“We are confident of our ability to increase to 12 million bpd whenever there is a need or a call from the government or the energy ministry to increase our production,” Nasser said. He added that the easing of COVID-19 restrictions in China and a pick-up in the aviation industry could boost demand.

Oil prices rallied more than 3% last week after a damaged pipeline component disrupted production at several offshore platforms in the Gulf of Mexico and as investors cut expectations for rate hikes interest in the United States.

Producers had moved to restart some of the halted production after repairs were completed Friday night, a Louisiana official said. Read more

Energy services firm Baker Hughes Co ( BKR.O ) reported on Friday that the U.S. oil rig count rose by 3 to 601 last week. The rig count, an early indicator of future output, has been slow to grow as oil output only recovered from pandemic-related cuts next year.

Global oil markets remained supported by tight supply in the run-up to EU sanctions on Russian crude and refined product supplies this winter. Read more

More supplies could come if Iran and the United States accept an offer from the European Union to revive the 2015 nuclear deal, which will lift sanctions on Iranian oil exports, analysts said. Read more

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Reporting by Florence Tan; Editing by Kenneth Maxwell and Muralikumar Anantharaman

Our standards: the Thomson Reuters Trust Principles.


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