SINGAPORE (Reuters) – Oil prices were significantly stable on Monday, and some early losses were repaid as investors took the global economic pressures that could influence oil demand.
PHOTO FILE: Oil rigs are seen drilling oil and gas shale Vaca Muerta, in the province of Neuquen Patagonia, Argentina 21 January, 2019. REUTERS / Agustin Marcarian
Global benchmark Brent LCOc1 crude oil futures were down 1 cent to $ 59.41 barrel by 0648 GMT.
U. West Texas Intermediate crude oil futures CLc1 was from 2 cents at $ 53.76 barrel.
Signs of global oil supply still combined with concerns about economic growth in China, the world's largest oil importer, lower prices on the second earlier Monday session.
“Weaknesses in oil prices showed a bearish picture of global energy demand, as the slowdown in manufacturing and trades did not end early,” said Margaret Yang, market analyst at CMC Markets.
Russia, the world's second largest oil producer, said on Sunday that it had not fulfilled its commitment to supply reduction in September due to the increase in natural gas consolidation output as the country prepared for winter. .
The Organization of Petroleum Exporting Countries, Russia and other oil producers organized an alliance called OPEC + in December to reduce supply by 1.2 million barrels per day (phd) from the beginning of this year.
In addition, talks between members of OPW, Kuwait and Saudi Arabia, the resumption of oil production from joint zones in the Neutral Zone between the two countries, with capacity of 500,000 barrels per day, could provide more supply back. the market.
Kuwait's foreign deputy said on Saturday that the negotiations were "very positive" after Kuwaiti's media, citing unknown sources, said the two Gulf oil producers said they would resume raw output from the oil fields.
However, any increase in Neutral Zone production will be compensated by the provision of supply from other areas in Saudi Arab and Kuwaiti as both countries are committed to their targets under the reduced OPEC + output agreement.
While market participants believe that OPEC + could decide to extend production cuts in an upcoming December meeting, the economic ones are constraining a bullish sentiment and are concerned about oil demand.
China's economic growth slowed to 6% year-on-year in the third quarter, the weakest in 27-1 / 2 years and not expected due to soft factory production and continuing trade tensions.
“The OPEC has led to procurement cutbacks policies, although seconded support is struggling to boost oil prices as the markets stand up to ongoing demand side concerns,” said Phillip Futures, analyst Benjamin Lu. .
However, China's refinery throughput in September showed a 9.4% increase year on year in strong petroleum demand.
Reporting by Roslan Khasawneh; edited by Richard Pullin and Christian Schmollinger
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