Oil prices plunged for a third session on Monday, following a slowdown in refining productivity and economic activity in China, indicating that the new eruption of “Govit-19” will affect the world’s second-largest economy.
Brent crude fell 2.09% to $ 68.78 a barrel at 1509 GMT. US crude was down 2.3 percent at $ 66.85 a barrel.
Contrary to expectations, data show that growth in industrial production and retail sales slowed significantly in July as a new eruption and flood wave disrupted business activity. Calvin Wong, mother of market analyst at CE. C markets in Singapore: “Weakness in oil future … may be the result of weaker-than-expected growth data from China’s major oil consumers.” Crude oil refining in China fell to its lowest level on a daily basis since May 2020 last month as independent refineries reduced production, reduced allocations, increased inventories and reduced profits. China is the world’s largest oil importer.
In Japan, the world’s fourth-largest crude importer, many analysts expect moderate economic growth in the current quarter as household spending is hit by renewed work restrictions aimed at curbing corona injuries.
Meanwhile, two well-known sources told Reuters yesterday: Russia’s oil and gas capacity production was 10.46 million barrels a day in the first half of August. One source said the crash was caused by a fire at a Cosprom processing plant in the north of the country.
Russia has said it will increase oil production by 100,000 barrels a day from August, following a decision by key producers of the “OPEC +” group to ease production restrictions.