Oil prices slide amid OPEC+ output hike concerns and sluggish US, China demand
Shafaq News/ Oil prices extendedlosses on Monday on expectations for higher OPEC+ production starting inOctober and as signs of sluggish demand in China and the US, the world's twolargest oil consumers, raised concerns about future consumption growth.
Brent crude futures fell 61 cents,or 0.8%, to $76.32 a barrel by 0450 GMT while US West Texas Intermediate crudeslipped 52 cents, or 0.7%, to $73.03 a barrel.
The losses followed a 0.3% declinefor Brent last week and a 1.7% drop for WTI.
The Organization of the PetroleumExporting Countries (OPEC) and their allies, a group known as OPEC+, is set toproceed with a planned oil output hike from October, six sources from theproducer group told Reuters.
Eight OPEC+ members are scheduled toboost output by 180,000 barrels per day (bpd) in October, as part of a plan tobegin unwinding their most recent layer of output cuts of 2.2 million bpd whilekeeping other cuts in place until end-2025.
"There are concerns that OPECwill go ahead and increase output from October," IG market analyst TonySycamore said.
"However, I think that outcomeis price dependent in that it happens if the WTI price is closer to $80 than$70."
Both Brent and WTI have postedlosses for two consecutive months as the US and Chinese demand concerns haveoutweighed recent disruptions in Libyan oil supply amid a dispute betweengovernment factions there and the tensions in the key Middle East producingregion related to the Israel-Gaza conflict.
"The softer-than-expected ChinaPMI released over the weekend heightens concerns that the Chinese economy willmiss growth targets," Sycamore said.
In the US, oil consumption slowed inJune to the lowest seasonal levels since the coronavirus pandemic of 2020, datafrom the Energy Information Administration showed on Friday.
"We see downside in growth in2025, driven by economic headwinds in China and the US," ANZ analysts saidin a note.
"We believe OPEC will have nochoice but to delay the phase out of voluntary production cuts if it wantshigher prices."
The number of operating US oil rigswere unchanged at 483 last week, Baker Hughes said in its weekly report.
(Reuters)
