NEW YORK: Oil prices edged lower on Monday, after sources told Reuters on weak Chinese economic data that OPEC and its allies believe the market does not need more oil in the coming months.
Brent crude fell $1.08, or 1.5%, to $69.51 a barrel, after falling earlier at $68.14. US oil fell $1.15, or 1.7%, to $67.29 after hitting a low of $65.73.
Markets were down more than 3% in the session after growth in sugar factory production and retail sales slowed sharply in July, missing hopes, as floods and the fresh outbreak of COVID-19 disrupted business activity Was.
Crude oil processing in China, the world’s biggest oil importer, also fell last month to its lowest daily level since May 2020, as independent refiners cut production due to tighter quotas, higher inventories and falling profits. Of.
However, prices corrected slightly after sources from OPEC+, including the Organization of the Petroleum Exporting Countries and its allies, said it would continue to release more oil despite US pressure to add supplies to stem the rise in oil prices. There is no need of.
OPEC+ in July agreed to boost production to 400,000 barrels per day starting in August until its current oil output shortfall of 5.8 million bpd is completely eliminated.
Two OPEC+ sources said the latest data from OPEC and the West’s energy watchdog – the International Energy Agency (IEA) – also indicated there was no need for additional oil. {OPEC/M]
The IEA said last week that rising crude demand reversed in July and the delta variant was expected to grow at a slower rate for the rest of 2021 due to rising COVID-19 infections.
U.S. oil production from seven major shale formations is expected to increase by about 49,000 barrels per day (bpd) in September, thanks to growth in the Permian, according to the Energy Information Administration’s monthly drilling productivity report on Monday.
The US Commodity Futures Trading Commission (CFTC) said on Friday that money managers reduced their net-long US crude futures and options holdings in the week to August 10.
The CFTC said speculators reduced their futures and options positions in New York and London from 21,777 contracts to 283,601.
Phil Flynn, Analyst at Price Futures Group, said, “As the demand outlook remains unclear as COVID cases increase, traders are cautious about hedging and locking in prices.
(Additional reporting by Ahmed Ghadar in London and Aaron Sheldrick in Tokyo Editing by David Evans and Steve Orlofsky)
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