Oil eases as China’s economic worries outweigh supply cuts; Brent hovers at $90/bbl
Oil prices eased on Thursday, September 7 as an uncertain economic outlook for China outweighed expectations of tighter supplies from extended supply cuts in Saudi Arabia and Russia. Market participants also digested mixed data from China. Overall exports fell 8.8 per cent in August year on year and imports contracted 7.3 per cent. However, crude imports surged 30.9 per cent.
Brent crude futures fell 42 cents, or 0.5 per cent, to $90.18 a barrel, while US West Texas Intermediate crude (WTI) futures fell 52 cents, or 0.6 per cent to $87.02, according to news agency Reuters.
Both benchmarks had spiked earlier in the week after Saudi Arabia and Russia, the world’s top two oil exporters, extended voluntary supply cuts to the year-end. These were on top of the April cuts agreed by several OPEC producers running to the end of 2024. On Tuesday, Brent crude futures rose by $1.04, or 1.2 per cent, to settle at $90.04 a barrel, closing above the $90 mark for the first time since November 16, 2022. US WTI futures had gained $1.14, or 1.3 per cent, to settle at $86.69 a barrel, also a 10-month high.
Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a September 19 expiry, were last trading lower by 0.79 per cent at ₹7,247 per bbl, having swung between ₹7,220 and ₹7,270 per bbl during the session so far, against a previous close of ₹7,305 per barrel.
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Updated: 07 Sep 2023, 06:42 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.