Free Trial

OIL: Crude Little Changed As Weak China Data Offset By Ongoing Libyan Issues

OIL

While oil prices rose moderately on Friday, they sold off into the US close. They have remained soft during today’s APAC trading, despite a weaker US dollar (BBDXY index -0.2%). Commodity prices have generally been fallen, while equities are mixed. 

  • Brent is little changed at $71.58/bbl, close the intraday low, while WTI is 0.1% higher at $68.72/bbl, as supply/demand developments offset each other.
  • China’s August data dump, released on Saturday, was generally below expectations. Oil markets have been concerned about the strength of China’s economy for some time and the data added to fears that it won’t make its 2024 growth target. Apparent oil demand fell 5.9% y/y; China is the world’s largest crude importer.
  • Some Libyan oil fields have been shut in recent weeks due to a dispute between the country’s two governments over the central bank managing oil revenues. Crude exports fell to 314kbd last week down from 468kbd in the first five days of September, according to Bloomberg tanker tracker data.
  • Bloomberg is reporting that hedge funds are net bearish Brent for the first time since data began in 2011.
  • Later the NY Empire manufacturing index for September and euro area July trade data print. The ECB’s Lane and de Guindos make appearances today. 
204 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

While oil prices rose moderately on Friday, they sold off into the US close. They have remained soft during today’s APAC trading, despite a weaker US dollar (BBDXY index -0.2%). Commodity prices have generally been fallen, while equities are mixed. 

  • Brent is little changed at $71.58/bbl, close the intraday low, while WTI is 0.1% higher at $68.72/bbl, as supply/demand developments offset each other.
  • China’s August data dump, released on Saturday, was generally below expectations. Oil markets have been concerned about the strength of China’s economy for some time and the data added to fears that it won’t make its 2024 growth target. Apparent oil demand fell 5.9% y/y; China is the world’s largest crude importer.
  • Some Libyan oil fields have been shut in recent weeks due to a dispute between the country’s two governments over the central bank managing oil revenues. Crude exports fell to 314kbd last week down from 468kbd in the first five days of September, according to Bloomberg tanker tracker data.
  • Bloomberg is reporting that hedge funds are net bearish Brent for the first time since data began in 2011.
  • Later the NY Empire manufacturing index for September and euro area July trade data print. The ECB’s Lane and de Guindos make appearances today.