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Oil prices hit fresh 2-1/2-month lows on Tuesday as mixed economic data from China offset the impact of Saudi Arabia and Russia extending output cuts.
Brent crude futures were down $1,65, or 1,94 percent, to $83,53 a barrel as of 0920 GMT while US West Texas Intermediate crude was at US$79,21 a barrel, down $1,61, or 1,99 percent. Both hit their lowest levels since late August.
The premium on front-month loading Brent contracts over ones loading in six months’ time was also at a 2-1/2-month low, indicating market participants are less concerned with current supply deficits.
While China’s crude oil imports in October showed robust growth both year on year and month on month, its total exports contracted at a quicker pace than expected.
Expectations of crude run reductions by China-based refiners between November and December could also limit oil demand and exacerbate price declines. – Reuters
Online Reporter