Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 06 19T005009Z 1 LYNXMPEJ5I00K RTROPTP 4 GLOBAL FUEL PRICES SPAIN | Business Express

Oil slides more than $1 on China growth uncertainties

Oil slides more than $1 on China growth uncertainties

By Katya Golubkova and Emily Chow

TOKYO (Reuters) -Global oil prices fell more than $1 on Monday, backing off last week’s gains, as questions over China’s economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States.

Brent crude lost $1.15, or 1.5%, to trade at $75.46 a barrel by 0350 GMT, while U.S. West Texas Intermediate (WTI) crude was down $1.09, or 1.5%, to $70.69.

Last week, Brent posted a gain of 2.4% and WTI rose 2.3%.

“China’s economic uncertainties may have caused the selloff after a two-day rebound in oil markets ahead of The People’s Bank of China’s (PBOC) decision on its loan prime rates (LPR) this week,” said Tina Teng, an analyst at CMC Markets.

A number of major banks have cut their 2023 gross domestic product growth forecasts for China after May data last week showed the post-COVID recovery in the world’s second-largest economy was faltering.

PBOC is widely expected to cut its benchmark loan prime interest rates on Tuesday, following a similar reduction in medium-term policy loans last week to shore up a shaky economic recovery.

Sources have told Reuters that China will roll out more stimulus support for its slowing economy this year, but concerns over debt and capital flight will keep the measures targeted at shoring up weak demand in the consumer and private sectors.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Still, China’s refinery throughput rose in May to its second-highest total on record, helping to boost last week’s gains, and U.S. energy firms cut the number of working oil and natural gas rigs for a seventh week in a row for the first time since July 2020.

The oil and gas rig count, an early indicator of future output, fell by 8 to 687 in the week to June 16, lowest since April 2022..

Oil prices on Monday are also lower on expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, or OPEC+, will struggle to get compliance with production quotas, said Edward Moya, senior analyst at OANDA.

“Rosneft is suggesting the cartel of oil producers focuses on exports and not production,” Moya said, referring to comments made by Igor Sechin, head of Russian energy major Rosneft.

Speaking at an economic forum on Saturday, Sechin said it would be appropriate for OPEC+ to monitor oil export volumes as well as production quotas due to the different sizes of each country’s domestic markets.

Earlier this month, OPEC+ had agreed on a new oil output deal. The group’s biggest producer Saudi Arabia also pledged to make a deep cut to its output in July.

(Reporting by Katya Golubkova in Tokyo and Emily Chow in Singapore; Editing by Tom Hogue)

 

Recent Post: