(C) Reuters. FILE PHOTO: Pump jacks are seen outside the West Siberian city of Kogalym, Russia, January 25, 2016. REUTERS/Sergei Karpukhin
By Shadia Nasralla
LONDON (Reuters) -Oil prices were broadly stable on Tuesday, recouping losses incurred earlier in the session on the back of weak demand picture in Asia and OPEC and its allies saying the market does not need more crude.
Brent crude was up 25 cents, or 0.4%, at $69.76 per barrel as of 1346 GMT. U.S. West Intermediate crude (WTI) rose 9 cents, or 0.1%, to $67.38 a barrel. Both contracts had fallen for three straight sessions.
On the demand side, daily crude processing in China, the world’s biggest oil importer, fell to its lowest in July since May 2020 as independent plants slashed production amid tighter quotas, high inventories and weakening profits.
China’s factory output and retail sales growth also slowed sharply and missed expectations in July, as new COVID-19 outbreaks and floods disrupted businesses.
Hedge funds sold petroleum last week for the sixth time in eight weeks as resurgent coronavirus infections in China, Europe and North America dampened hopes of a rapid resumption in long-distance air travel.
Japan was set to extend and widen restrictions in Tokyo and elsewhere while New Zealand entered a new lockdown after the country’s first coronavirus case in six months was reported.
On the supply side, U.S. shale oil output is expected to rise to 8.1 million barrels per day (bpd) in September, the highest since April 2020, according government data.
Last week, U.S. President Joe Biden’s administration urged OPEC+, which groups members of the Organization of the Petroleum Exporting Countries and other producers such as Russia, to boost oil output to tackle rising gasoline prices.
But four sources told Reuters that the group believes oil markets do not need more crude than they plan to release in the coming months.
Oil prices broadly stable after weak Asian data
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