Oil prices stabilize lower on US supply and lower Chinese demand

Oct 18 (Reuters) – Oil prices stabilized on Tuesday on fears of an increase in U.S. supply combined with an economic slowdown and lower Chinese demand for fuel.

Brent crude futures settled $1.59, or 1.7%, at $90.03 a barrel, while U.S. West Texas Intermediate (WTI) crude settled at 2.64 $, or 3.1%, to $82.82 a barrel.

China, the world’s top crude oil importer, indefinitely delayed the release of economic indicators originally scheduled for release on Tuesday, signaling to the market that fuel demand is significantly depressed in the region. Read more

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“It’s not a good sign when China decides not to release economic numbers,” said John Kilduff, a partner at Again Capital LLC in New York.

China’s adherence to its zero-COVID policy has continued to heighten uncertainty over the country’s economic growth, said CMC Markets analyst Tina Teng.

Oil prices were also pressured by reports that the US government would continue to release crude oil from reserves.

The Biden administration plans to sell oil from the Strategic Petroleum Reserve in a bid to lower fuel prices ahead of next month’s congressional elections, sources told Reuters on Monday.

In addition, U.S. crude oil inventories are expected to have risen for the second consecutive week, a preliminary Reuters survey showed on Monday.

Production in the Permian Basin of Texas and New Mexico, the largest U.S. shale oil basin, is expected to increase by about 50,000 barrels per day (bpd) to a record 5.453 million bpd this month. , said the Energy Information Administration.

Investors had increased their long futures positions after OPEC+ agreed to cut production by 2 million barrels per day, analysts at ANZ Research said in a note.

Several members of the oil-producing group endorsed the cut after the White House accused Saudi Arabia of coercing some countries to back the move, a charge Riyadh denies.

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Additional reporting by Rowena Edwards in London, Isabel Kua in Singapore Editing by David Goodman, Ed Osmond, Nick Macfie and David Gregorio

Our standards: The Thomson Reuters Trust Principles.

Laura Sanicola

Thomson Reuters

Oil and energy reports, including refineries, markets and renewable fuels. Previously worked at Euromoney Institutional Investor and CNN.

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