BENGALURU: Oil prices fell more than three per cent on Tuesday to their lowest since late July, as mixed Chinese economic data and rising Opec exports eased fears about tight markets and as the dollar strengthened.
Brent crude futures fell $2.95, or 3.5pc, to $82.23 a barrel as of 1:41 p.m. ET (1841 GMT). US West Texas Intermediate crude fell to $77.94 a barrel, down $2.88, or 3.6pc.
Both contracts hit their lowest levels since July 24, with Brent set to close below $84 a barrel for the first time since Hamas Oct 7 attack on Israel.
“Traders will remain on high alert for signs of a wider conflict emerging in the region that could disrupt supplies, but it seems those fears are subsiding,” OANDA analyst Craig Erlam said.
A recovery in oil exports from the Organization of Petroleum Exporting Countries also added to the pressure on oil prices, UBS analyst Giovanni Staunovo said.
“Opec crude exports are up by about 1 million barrels per day (bpd) since their August low, as a result of seasonally lower domestic demand in the Middle East. It seems it is too much supply to be absorbed by oil consuming nations,” Staunovo said.
The premium on front-month loading Brent contracts over ones loading in six months LCOc1-LCOc7 was at a 2-1/2-month low, indicating less concern about supply deficits.
On the demand side, China’s crude oil imports in October showed robust growth but its total exports of goods and services contracted at a quicker pace than expected.
Published in Dawn, November 8th, 2023
