Crude prices close lower on demand data from China

The Petroleum closed lower on Monday in a choppy session marked by data that showed demand for China remained lackluster in September, while weaker US trade activity data eased expectations for more aggressive rate hikes.

The futures of Brent crude oil for December delivery closed at 93.26 dollars a barrel, down 24 cents or 0.3%, after rising 2% last week.

United States crude, WTI, closed at 84.58 dollars a barrel, after losing 47 cents or 0.6%. Both contracts had fallen $2 a barrel earlier in the session.

Although higher than in August, crude oil imports from China in September of 9.79 million barrels per day was 2% lower than a year earlier, customs data showed, as independent refiners cut throughput amid tight margins and lackluster demand.

“The recent recovery in oil imports faltered in September,” the ANZ analysts said in a note, adding that increased quotas were not used by independent refiners as ongoing Covid-19-related lockdowns weighed on production. demand.

The uncertainty about the zero COVID policy of China and the housing crisis are undermining the effectiveness of growth-friendly measures, ING analysts said in a note, even though third-quarter gross domestic product growth beat expectations.

The strength of the dollar, which rose again during part of the trading session after another alleged currency intervention by Japan, also posed problems for oil prices. A stronger greenback makes oil more expensive for non-US buyers.

Los oil prices regained some ground after data showed US business activity contracted for the fourth straight month in October, with manufacturing and service companies in a monthly survey of purchasing managers reporting customer demand was more weak.

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