Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Oil Hovers Near 6-Mth Lows as China Woes, Saudi Supply Glut Weigh

Commodities Aug 15, 2022 08:46PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
LCO
-1.86%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-1.83%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick 

Investing.com-- Oil prices recovered some ground in Asian trade on Tuesday, but hovered around six-month lows on concerns over waning Chinese demand and a Saudi Arabian supply glut.

Brent oil futures rose 0.6% by 20:19 ET (00:19 GMT) to $93.97 a barrel, while crude oil WTI futures sank 1.1% to $88.39 a barrel. Both contracts plummeted between 3.5% and 5% on Monday, touching their lowest levels since early-Feb. 

Weaker-than-expected Chinese industrial production data was the main trigger behind oil’s recent losses, given that it points to sluggish demand in the world’s largest crude importer. 

The reading on Monday is a result of a series of COVID-19 lockdowns in the country, which had ground economic activity to a halt earlier this year. 

China’s central bank also cut lending rates on Monday, as it looks to shore up growth in the face of more COVID lockdowns. The country had last week imposed a lockdown in commodities hub Yiwu and surrounding areas. 

On the supply front, Saudi Aramco - the world’s largest crude producer - said it could potentially increase output, despite a decline in demand this year.

Aramco (TADAWUL:2222) said it stood ready to increase output up to 12 million barrels per day, despite the Organization of Petroleum Exporting Countries (OPEC), which Saudi Arabia heads, signaling earlier this month that no supply hikes were planned. 

OPEC had also lowered its outlook on oil demand for the year. 

Focus was also on negotiations between Western powers and Iran over reviving a 2015 nuclear deal, which could relax certain sanctions on Iranian oil and further increase crude supply. 

The country is set to respond to the European Union’s “final” draft of the deal later today. 

Oil prices saw massive swings this year, initially hitting over a decade’s high on supply shocks from the Russia-Ukraine conflict. But forecasts of slowing economic growth across the globe have since erased those gains. 

But a potential energy crunch in Europe and a pickup in industrial activity in the second half of the year could help underpin crude.

 
 
Oil Hovers Near 6-Mth Lows as China Woes, Saudi Supply Glut Weigh
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
John Kelly
John Kelly Aug 16, 2022 12:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
back to 100 before long
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email