Oil prices slump as China’s growth slows and US production raises demand concerns

Texas News Today

FILE PHOTO: Crude oil storage tanks are seen in an aerial photo of the Cushing Oil Hub in Cushing, Oklahoma, USA, April 21, 2020. Reuters / Drone Base

October 19, 2021

Aaron Sheldrick

TOKYO (Reuters) – Oil prices fell on Tuesday, marking Brent’s second straight day of fall. New concerns about demand arose as data from China showed slowing economic growth and a slump in US factory output in September delayed the coronavirus recovery from the pandemic.

Brent crude fell 43 cents (0.5%) by 0132 GMT to $83.90 a barrel on Monday after falling 0.6%. This month’s contract is still up about 7%.

US oil fell 33 cents (0.4%) to $82.11 a barrel, up 0.2% in the previous session and up nearly 10% this month.

US factory output fell sharply over the past seven months as a global shortage of semiconductors delayed car production. This is further evidence that supply constraints are stifling economic growth.

In China, the world’s second-largest economy, energy shortages and sporadic outbreaks of the coronavirus have hit the country, causing bottlenecks to drop to its lowest growth level in a year.

China’s daily crude oil processing rate fell again last month, hitting its lowest level since May last year.

Analysts said oil, coal and gas prices are likely to remain higher as the northern hemisphere is witnessing a cold winter.

“Colder winters could push energy prices even higher,” a commodity analyst at Citi Research said after raising its forecast for Brent crude oil from $74 a barrel to $85 a barrel in 2021. Rice field.

According to AccuWeather.com, the cold season has already begun in China, and temperatures are forecast to drop to near freezing in the northern regions.

It also helps keep prices down, and US oil production on the rise. According to official reports, production is expected to increase further next month at the largest Page Rock formation in the United States.

(Reporting by Aaron Sheldrick, edited by Kenneth Maxwell)

Oil prices slump as China’s growth slows and US production raises demand concerns

Source Links Oil prices fell as China slowed growth, and US production raised demand concerns

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