Dubai: «The Gulf»
Oil prices stabilized during trading Wednesday, following disappointing economic data from China, the largest buyer of crude, renewed fears of a global recession.
Brent crude futures settled at $92.35 a barrel, following recording earlier on Tuesday a high of $95.95.
And US crude contracts rose to 86.76 dollars a barrel, following jumping earlier on Tuesday to 90.65 dollars.
Oil prices fell regarding 3% on Tuesday to their lowest level since before the Russia-Ukraine war, while economic data raised fears of a possible global recession, while the market awaited clarification on talks to revive an agreement that might allow more crude exports from Iran.
The global benchmark Brent crude contracts, to the nearest maturity, ended Tuesday’s trading session, as low as $2.76, or 2.9%, to record at a settlement of $92.34 a barrel. During the session, the contract recorded a lower level at $91.71 a barrel, the lowest since February 18.
US West Texas Intermediate crude contracts closed as low as $2.88, or 3.2%, at $86.53 a barrel, following tumbling during the session to $85.73 a barrel, the lowest since January 26.
The two benchmark contracts had fallen by regarding 3% in the previous session.
Tag:
oil prices
Oil prices fell more than $2 on Tuesday following disappointing economic data from China, the biggest buyer of crude, revived fears of a global recession and as the market waited for more clarity on talks to revive a deal that might allow more oil exports from Iran. Brent crude futures fell $2.47 to $92.63 a barrel by 15:50 GMT, following hitting a high of $95.95 earlier. US crude contracts fell $2.60 to $86.81 a barrel, following having earlier jumped to $90.65. Both benchmark contracts had fallen regarding three percent in the previous session. The Chinese central bank cut lending interest rates to revive demand as the economy unexpectedly slowed in July, factory activity and retail sales contracted due to Beijing’s strict zero-Covid policy and a real estate crisis. “Commodity prices across the board have been under pressure, as China’s economic data for July paints a more pessimistic picture of growth than previously expected, leading to renewed concerns regarding the outlook for demand,” Yip Junrong, a market expert from IG Group, said in a letter. ». Investors are closely following talks to revive the 2015 Iran nuclear deal. Analysts said more oil might enter the market if Iran and the United States accepted a European Union proposal that would lift sanctions on Iranian oil exports. The market is also awaiting data on crude stocks in the United States, which will be released later today from the American Petroleum Institute. A preliminary poll conducted by Archyde.com showed that US oil and gasoline stocks likely fell last week, while distillate stocks rose.
Iranian Foreign Minister Hossein Amir Abdollahian announced yesterday that there are 3 “red lines” that remain to be resolved to reach a nuclear agreement, adding that his country will respond within a day to the “final” text of the European Union to save the agreement concluded in 2015, and called on the United States to show flexibility. in solving the remaining three problems.
Abdollahian said, “The American side verbally agreed to two proposals for Iran, and we will send our final proposals to the European Union at 12 midnight Monday-Tuesday,” adding that “if three issues are resolved, we will be able to reach an agreement in the coming days.”
While the minister did not specify the nature of the two oral proposals, he clarified that “they must be converted into text, in addition to showing flexibility on the third issue,” noting that Tehran’s response “will not be a final acceptance or rejection of the current European Union proposal.” He added, “We told them that our red lines must be respected. We have shown them a lot of flexibility, and we do not want to reach an agreement that fails to be implemented on the ground following 40 days, two or three months.” He said during a meeting with journalists at the ministry’s headquarters, “The coming days are very important…but it will not be the end of the world if Washington does not show flexibility. We also have our alternative plan if the talks fail.”
European diplomats and officials said that whether Washington and Tehran accept the EU’s “final text” to revive the Iran nuclear deal, it is unlikely that either of them will announce its cancellation, because keeping it is in the interests of both parties.
…More
(CNN)–Oil prices fell sharply on Monday, as investors worried regarding the state of the economy in China, the world’s largest oil importer.
US crude fell 4.4% to $ 88.03 a barrel, and crude oil recorded its lowest level at $ 86.82, its lowest since February 3, and Brent crude lost 4.5% to $ 93.75 a barrel.
The losses come following new reports that the Chinese economy continues to lose strength, due in part to renewed lockdowns related to the fight once morest the Corona virus.
The latest data shows retail sales growth slowed in July and the property sector worsened, and China’s central bank cut interest rates on Monday in an attempt to revive growth.
“The market took this as a bearish signal on the outlook for oil demand,” said Richard Joswick, head of global oil supply analytics at S&P Global Commodity Insights.
Meanwhile, oil traders are closely watching negotiations between Iran and the West over a potential nuclear deal, in which sanctions relief might pave the way for millions of barrels of stored Iranian oil to enter the market and allow the OPEC member country to ramp up its production at a time when it is becoming a global supplier. Russian oil is in doubt.
“If a deal is reached with Iran, the implications for the oil market and Russia might be far-reaching,” Andy Lebow, president of Lipow Oil Associates, wrote in a note Monday.
Recent declines in the oil market may put more pressure on fuel prices. The average price of gasoline in the United States of America remained at $3.96 a gallon, on Monday, for the second day in a row, according to the American Automobile Association.
Gasoline prices fell by $1.06 from the record high of $5.02 recorded on June 14.