Oil Prices Decline over China’s Demand Concerns
In the global commodity market, crude oil prices decline over concerns that China’s demand outlook is weakening and a stronger dollar despite a tightening supply picture. Brent dipped by 0.7% to $84.57 a barrel, while WTI fell 0.8% to $82.16 a barrel. Oil supply is expected to tighten in the near future.
Improving compliance from OPEC members should keep the market undersupplied by more than 1 million barrels a day in the third quarter, pushing prices toward $90 a barrel, analysts from ANZ Bank say in a research note
Chinese demand concerns continue to cap prices, while Canadian supply risks have reinforced the floor for the market. The oil market is once again relatively range bound in the global commodity market amidst buckets of uncertainties.
To the upside, growing Chinese demand concerns are capping the market, following a raft of data earlier this week suggesting a softer demand picture, ING said in a note. To the downside, expectations of a tight market through the third quarter continue to provide a floor to prices, analysts said.
While, in the short term, supply concerns from Canada provide a more solid floor. Wildfires in Alberta, Canada, are posing a growing threat to oil sands output. Analysts reported that more than 130 fires are burning in Alberta, putting in the region of 500,000 b/d of oil supply at risk. #Oil Prices Decline over China’s Demand Concerns FG Offers 3 Bonds Valued at N300bn for Subscription
