Oil Prices Dragged Down by Low Asian Demand

Brent crude was under 26 cents, or 0.3%, at $69.25 by the barrel as 0918 GMT, following growing as high as $69.77 earlier in the session.

U.S. West Intermediate crude (WTI) shifted 0.4%, or 31 cents, to $66.98 per barrel, following touching $67.66 earlier.

Daily crude processing in China, the world’s largest oil importer, dropped to its weakest in July after May 2020. Particularly as independent plants cut production amid tighter quotas, high inventories, and declining profits.

China’s output and retail sales increase

In July, China’s factory production and retail sales increase also decreased distinctly and missed expectations. Especially as new coronavirus Delta variant outbreaks and floods disturbed businesses.

Hedge funds traded petroleum last week for the sixth consecutive time in eight weeks. A resurgent of Covid-19 Delta variant infections in China, Europe, and North America discouraged hopes of a speedy resumption in long-distance air travel.

Japan was estimated to spread its state of emergency in Tokyo and other areas to Sept. 12 and extend curbs to seven more prefectures.

On the supply side, U.S. shale oil production is anticipated to grow to 8.1 million barrels per day (bpd) in September. This was the most distinguished month following May 2020.

Last week, U.S. President Joe Biden’s administration pushed OPEC+ and other producers such as Russia, to increase oil production. This is to help stop increasing gasoline prices.

But four sources informed Reuters that the group considers oil markets do not require more crude oil than they intend to release in the following months.