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Oil prices lower on China data, fading chance of output cut

Published 02/01/2016, 07:56 AM
Updated 02/01/2016, 07:56 AM

Investing.com - Oil prices fell on Monday after China posted weak economic data, while fading prospects for a coordinated output cut by leading crude exporters also weighed.

Chinese data showed its manufacturing sector contracted at the fastest pace since 2012 in January, adding to worries about demand from the world's top energy consumer at a time when the market is already weighed down by a large supply overhang.

Global benchmark Brent crude was down 0.54% at $35.80 per barrel at 10.04 GMT, while U.S. crude was down 1.5% at $33.11 a barrel.

Oil prices also came under further pressure from dimming prospects of a coordinated production cut by exporters like the Organization of the Petroleum Exporting Countries and Russia due to their differences.

Oil prices jumped last week after Russian energy officials said they had received proposals from OPEC lynchpin Saudi Arabia on managing output.

Latest comments

Not only is the chance of cooperation between Russia and OPEC diminishing, but the end result of the cooperation should be called into question. Whatever production cuts they make, other oil producers (such as US) will more than make it for it as they take their market share. Many oil projects in the US are cancelled or stalled as a result of the rout in the oil price. What is stopping these oil projects from coming online the moment the oil price stabilizes?
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