Oil Skids, Reuters to slow imports to China after Saudi cuts prices

By Florence Tan

SINGAPORE (Reuters) – Oil prices traded down more than 1% on Monday, the lowest level since July, as Saudi Arabia slashed its monthly supply for five months in Asia and optimism about a recovery in demand amid an epidemic cooled. Was.

Brent crude () fell 64 55 cents or 64. GM1 was up 1.3% at ૨ 16.11 a barrel, up from અગાઉ 1. July0 is the lowest since July after going to the surface of the toddler.

U.S. West Texas Intermediate Crude () fell 64 64 cents, or 1.6%, to bar 1.1 a barrel, down from અગાઉ 55 a barrel, the lowest level since July 10. .

Petroleum Exporting Countries (OPEC) and its allies, known as OPEC +, and the government’s efforts to stimulate the global economy and oil demand, despite supply cuts, the world is uneasy about crude and fuel. Refiners have consequently reduced their fuel production, prompting oil producers such as Saudi Arabia to cut prices to offset declining demand for crude.

Howie Lee, an economist at OCBC Bank in Singapore, said sentiment has soured and there may be some selling pressure ahead.

The Labor Day holiday on Monday marks the traditional end to the peak summer demand in the United States and renews investors’ attention to the current tight fuel demand in the world’s largest oil consumer.

China, the world’s largest oil importer, has been supporting prices with record purchases, reducing its consumption in August and boosting exports of its products, according to customs data on Monday.

Kisuk Sadamori, director of the International Energy Agency’s energy markets and security, told Reuters that the Chinese economy and the U.S. At the same time and even these days there are many uncertainties regarding the relationship with Europe and its major industrialized countries.

“It’s not such an optimistic situation – which casts a slight shadow on the growth outlook.”

Saudi Arabia, the world’s top oil exporter, has slashed October official selling prices for most Arab light crude sellers in Asia since May, indicating weak demand. Asia is the largest market by region of Saudi Arabia.

In August, the OPEC + group cut production cuts to 7.7 million barrels per day after global oil prices improved to historic historic lows due to demand for fuel to cut the coronavirus epidemic.

Oil is also under pressure as US companies step up their drilling for new supplies following the recent recovery in oil prices.

Oil and rigs were added for the second time in the last three weeks by U.S. energy companies last week, according to a weekly report. Baker Hughes Co (n 🙂 Friday.