Oil 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.