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Oil Prices Decline After China Economic Data Disappoints

Oil Prices Decline After China Economic Data DisappointsOil Prices Decline After China Economic Data Disappoints

Oil prices fell on Monday after reports that China’s third-quarter economic growth did not rise as much as expected, underscoring concerns that surging coronavirus cases globally are impacting demand in the world’s largest oil importer.
The world’s second-largest economy in the third quarter expanded by 4.9% from a year earlier, missing analyst expectations, government data showed, CNBC reported.
Refiners in China, the world’s second-largest oil user, slowed their processing rates in September and industrial metal imports, underpinned by government stimulus, were lower.
Brent crude for December slipped 15 cents, or 0.4%, to $42.78 a barrel. US West Texas Intermediate crude for November was at $40.70 a barrel, down 18 cents. The contract will expire on Tuesday.
Brent rose 0.2% last week while WTI gained 0.7%, after crude and oil product inventories in the United States, world’s top oil consumer, fell.
China’s oil-buying frenzy earlier this year is expected to slow in the fourth quarter amid high inventories and limited import quotas for independent refiners.
Last week’s meeting of the OPEC+ Joint Technical Committee reported a gloomier fuel demand outlook because of fears that a prolonged second wave of the Covid-19 pandemic and that a jump in Libyan output could push the oil market into surplus next year. 
 

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