Oil Drops After Chinese Data; All eyes on OPEC+

Oil prices fell today, Monday, after the growth of the Chinese economy in the third quarter of the year was weaker than expected, highlighting concerns about the impact of the growing Coronavirus infections around the world on demand for the largest importer of crude in the world.

The world’s second-largest economy expanded 4.9% year-on-year in Q3, while analysts expected it to grow 5.2%, government data showed.

Refiners in China, the world’s second largest consumer of oil, curbed crude processing rates in September.

Brent crude for December delivery was down 20 cents, or 0.5%, to $ 42.73 a barrel. US West Texas Intermediate crude for November delivery was $ 40.69 a barrel, down 19 cents. The contract expires tomorrow, Tuesday.

Brent rose 0.2% last week, while West Texas rose 0.7%, after inventories of crude oil and its products fell in the United States, the largest consumer of oil in the world.

The committee may decide to postpone plans to ease existing supply cuts of 7.7 million bpd by 2 million bpd from January.

The group’s joint technical committee meeting last week drew a bleak forecast for fuel demand due to fears of a prolonged second wave of the Covid-19 pandemic and a jump in Libyan production, which could create a surplus in the market next year.