The service activity index in China decreases and the impact on consumer spending
“It is difficult to achieve the objective of increasing the price of oil even after the cuts in production due to the economic impact”
International oil prices, which hit their highest level in five weeks following OPEC + ‘s decision to cut production by 2 million barrels a day, fell again on fears of weakening Chinese demand.
Benchmark Brent crude fell 0.1% to $ 97.85 a barrel in the morning, according to MarketWatch on the 10th (local time). US West Texas Intermediate crude fell slightly to $ 92.61 a barrel.
The Wall Street Journal reported today that consumer spending fell on China’s National Day. Previously, China’s private sector service sector activity index fell over the weekend after rising for the third straight month.
OPEC and its allies, including Saudi Arabia and Russia, agreed at a meeting last week to cut production by 2 million barrels a day starting in November in an effort to raise oil prices.
Evercore analysts estimate that production will actually be reduced from 500,000 to 1.1 million barrels per day, taking into account the quota for each producing country.
Fitch, an international rating agency, said on the same day that “the recent increase in global oil inventories suggests that the market is overproducing”. He also stressed that “OPEC + will aim to raise oil prices through market equilibrium by changing production allocations and the available supply of crude oil”, but stressed that “it may be difficult to reach an agreement between member countries. due to economic stagnation in developed markets and uncertainties in demand “.
By Kim Jung-ah, staff reporter [email protected]
