Oil prices sink as China data raises fresh fear about crude demand

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PR Distribution

Oil futures fell Monday, with the commodity nether unit aft a circular of anemic China information underscored the imaginable harm to request from the dispersed of the delta variant of the coronavirus that causes COVID-19.

West Texas Intermediate crude for September transportation CL00, -3.14% CLU21, -3.14% fell $2.02, oregon 3%, to $66.42 a tube connected the New York Mercantile Exchange. October Brent crude BRN00, -2.75% BRNV21, -2.75%, the planetary benchmark, was disconnected $1.79, oregon 2.5%, astatine $68.80 a tube connected ICE Futures Europe.

July data retired of China showed retail income and concern accumulation disappointed, on with a January-to-July measurement of fixed-asset investment. Meanwhile, the Taliban’s takeover of Kabul and the autumn of the Afghanistan authorities was seen contributing to a weaker code successful fiscal markets but did small to adhd a hazard premium to crude prices.

“The debacle successful Afghanistan has attracted a batch of attraction lately but determination has been nary disposable marketplace impact,” said Marios Hadjikyriacos, elder concern expert astatine XM, successful a note.

“Oil prices are alternatively trading little connected Monday arsenic fears astir a slowdown successful Asian request overpowered hopes for proviso disruptions successful lawsuit the instability successful Afghanistan spreads beyond its borders,” the expert said.

Digging into the China figures, July crude-oil processing fell to 59.06 cardinal tonnes, oregon 13.9 cardinal barrels a day, the lowest since May 2020, said Carsten Fritsch, expert astatine Commerzbank. That was down 0.9% twelvemonth implicit year, the archetypal specified antagonistic speechmaking since March 2020.

He noted refineries had processed a grounds 14.8 cardinal barrels a time successful June, but a drawstring of low, monthly import figures had indicated the gait would person to slow.

In the archetypal 7 months of 2021, Chinese refineries inactive processed astir 9% much crude lipid than successful the aforesaid play a twelvemonth earlier, helium noted, “as good arsenic much than ever before.”

“Some refineries person announced that they whitethorn trim their output adjacent further successful August, citing the dispersed of the delta variant arsenic the reason,” Fritsch wrote.

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