Oil Prices Dip 2%

London: 7 November 2023 (TraderMade): Oil prices saw a 2% decline on Tuesday, erasing the gains made on Monday. This drop came as a result of a blend of economic data from China, the world's second-largest oil consumer, along with concerns about winter demand, which offset the positive impact of Saudi Arabia and Russia extending their output cuts.

Benchmark Oil Price Update

Brent Crude (UKOIL) closed on Monday at $85.076 per barrel, and by 09:35 AM GMT, it was $83.268 per barrel. It shows a 2.13% decrease. This represented a recovery after initially dropping by $1 earlier.

Meanwhile, the US West Texas Intermediate crude (OIL) stood at $78.971 per barrel, marking a $1.76 drop, or 2.18%.

Both benchmark oil prices had seen modest gains of approximately 30 cents on Monday after leading oil exporters Saudi Arabia and Russia reassured the market about their continued commitment to extra voluntary oil supply cuts until the year's end.

China's recent economic data showed robust growth in crude oil imports year-on-year and month-on-month for October. However, the nation's total exports contracted more quickly than expected, reflecting sluggish global demand.

Additionally, concerns have arisen regarding the possibility of a milder-than-expected winter, which could diminish energy and fuel demand. As for future supply dynamics, market participants are closely watching the intentions of Saudi Arabia and Russia with respect to production curbs.