Oil falls on weak economic data
The EU imported more than a quarter of its oil from Russia before the war and has been accused of not moving fast enough to stop funds flowing to Moscow's war machine. PHOTO: AFP
Oil prices fell by nearly $4 a barrel on Monday after disappointing Chinese economic data renewed concerns of a global recession that would be expected to reduce fuel demand.
Brent crude futures fell $3.88, or 4%, to $94.27 a barrel by 1634 GMT after settling 1.5% lower on Friday. US West Texas Intermediate crude was down $3.68, or 4%, at $88.41 after dropping 2.4% in the previous session.
Brent futures were close to their lowest since before Russia sent troops into Ukraine on February 24, while WTI futures touched their lowest on Monday since early February.
A damaged oil pipeline component that disrupted output at several offshore US Gulf of Mexico platforms was repaired late Friday, prompting oil producers to reactivate some of the halted production, a Louisiana official said last week. “Supply disruptions at several offshore oil platforms within the Gulf coast region that added to last week’s price strength appear to have stabilised for now with output resuming,” said Ritterbusch and Associates LLC in Galena, Illinois President Jim Ritterbusch.
Brent crude open interest this month is down by 20% from August last year.
Published in The Express Tribune, August 16th, 2022.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.