Oil prices fell in early Asian trading, Monday, as economic concerns in China affected expectations for fuel demand, although Brent crude remained above $90 a barrel, supported by tight supplies after Saudi Arabia and Russia extended supply cuts.
By 0022 GMT, Brent crude fell 49 cents, or 0.5 percent, to $90.16 per barrel, while US West Texas Intermediate crude recorded $86.77 per barrel, down 74 cents, or 0.9 percent.
“Concerns about Chinese economic growth affected sentiment in various commodities,” ANZ analysts said in a note.
They added, “This step was exacerbated by the strength of the US dollar, which kept investors’ appetite low,” referring to the US currency, which has risen for eight consecutive weeks.
Both contracts rose in the past two weeks and Brent settled at its highest levels since November on Friday, after Saudi Arabia and Russia announced last week that they would extend voluntary supply cuts amounting to a combined 1.3 million barrels per day until the end of the year.
The International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC) are scheduled to issue their monthly reports this week.
“Any sign of strong demand from the oil market reports issued by the International Energy Agency and OPEC is likely to push oil prices higher,” ANZ analysts said.
2023-09-11 01:10:02
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