Oil getting moderately cheaper on fears for demand in China

Global oil prices are getting lower on August 31 morning amid the situation with coronavirus in China, which is the largest consumer of crude, threatening a recovery in demand, trading data showed, Report informs referring to Prime agency.

The price of November futures for Brent crude oil fell by 0.29 percent to $72.02 per barrel, October futures dropped by 0.23 percent to $73.24. Prices for October futures for WTI oil fell by 0.26 percent to $69.03 per barrel.

Outbreaks of the Delta strain in China have led to new additional restrictions and reduced economic activity in the country. Such circumstances are likely to negatively affect the demand for oil, which puts pressure on prices.

In addition, investors continue to monitor the aftermath of Hurricane Ida. Earlier, the US Department of Energy said that the hurricane affected at least nine oil refineries in the US state of Louisiana. According to commodities analyst company Kpler, quoted by the Wall Street Journal, oil is getting cheaper as Hurricane Ida prevents the export of petroleum products, such as gasoline and diesel fuel, and there is an overstocking of them.

At the same time, investors are evaluating reports of a full recovery in oil production by the Mexican oil and gas company Pemex. Earlier in August, a fire broke out on one of the concern’s platforms, which led to the suspension of crude production.