A pump jack in operation at sunset in an oil field in Midland, Texas, USA, August 22, 2018. Taken on August 22, 2018.Reuters/Nick Oxford/File Photo Acquisition of license rights
BEIJING, Sept 5 (Reuters) – Expected extended supply cuts by OPEC plus key members Saudi Arabia and Russia show data show China’s economy still struggling to recover post-pandemic Crude oil prices were broadly flat on Tuesday as the
North Sea Brent crude futures fell 9 cents, or 0.10 percent, to $88.91 a barrel in November. US West Texas Intermediate Crude (WTI) futures for October delivery rose 34 cents, or 0.4%, to $85.89 at 0315 GMT.
Saudi Arabia is widely expected to extend its voluntary production cuts until October, and Russia is expected to announce a new OPEC+ supply cut deal this week, he said.
The Russian government has already announced cuts of 300,000 bpd in September, following a 500,000 bpd cut in August. Riyadh also plans to carry forward a voluntary cut of 1 million barrels per day to October.
“Given market expectations, the two producers are unlikely to move away from the extension, which puts the market at risk of a sharp drop,” ING analysts said in a note to clients.
On the downside, as weak demand continues to plague the world’s second-largest economy and stimulus measures have failed to meaningfully revive consumption, China’s services sector has expanded, according to a private sector survey on Tuesday. showed its slowest pace in eight months.
Analysts said the market had priced in China’s recent stimulus, offsetting support from an expected cut in oil supply.
Household spending in Japan, the world’s third-largest economy, fell 5.0% in July compared to the same month last year, an even bigger drop than the 2.5% expected, marking the fifth straight month of decline.
Reported by Katya Golubkova in Tokyo and Andrew Haley in Beijing. Edited by Shri Navaratnam and Miral Fahmy
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