Oil prices hit a 2.5-month low on Tuesday (7/11) as mixed economic data from China offset the impact of extending output cuts from Saudi Arabia and Russia.
Both US crude and Brent fell to their lowest levels since late August, suggesting traders are less concerned about current supply shortfalls.
While China’s October crude oil imports posted strong growth both year-on-year and month-on-month, its overall exports contracted at a faster-than-expected pace.
Expectations of crude cuts from China-based refiners between November and December could also curb oil demand and exacerbate the price slide.
Global stocks, which often trade alongside oil, lost momentum on Tuesday as investor excitement that interest rates may have peaked faded. Additionally, the US dollar has rallied from recent lows, making oil more expensive for holders of other currencies.
On the supply side, markets are waiting to see whether Saudi Arabia and Russia are prepared to voluntarily curb output beyond the end of the year, barring a broader agreement among the OPEC+ group of producers.
OPEC+ is unlikely to rush to reverse oil production cuts when its joint ministerial monitoring committee meets on Nov. 26, said Kelvin Wong, senior market analyst at OANDA.
At midday on Tuesday, US crude was down 1.42% at $79.67 a barrel, while Brent was down 1.54% at $83.87 a barrel.
Natural gas goes up
In contrast, Dutch natural gas futures, a benchmark for Europe, are moving up, as they are up 2.304% to 45.865 euros per megawatt hour.
Gold fell 1.17% to $1,964.85 an ounce, while silver fell 2.69% to $22.608 an ounce and copper lost 1.58% to $3.6603 a pound.
In currencies, the US dollar was down 0.32% against the euro at $1.0681 per euro.
Against the British pound, the US currency fell 0.36% to $1.2297 per pound, which gained 0.06% against the euro at 0.8687 British pounds per euro.
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