Through Sheela Tobben to 20/09/2021
(Bloomberg) –Oil has resumed its decline amid growing concerns over the health of China’s economy that have triggered massive stock losses.
U.S. crude futures fell 2.8% Monday to a week-long low as concerns grow over a possible implosion in the Chinese real estate sector that could impact the Asian giant’s appetite for money. raw. A stronger US dollar also makes commodities denominated in the currency less attractive.
“China is the global center of swing demand,” said John Kilduff, partner at Again Capital LLC. “If we lose China, we will lose much of the recent price gains. “
Crude prices have performed well so far this month – U.S. oil futures are up about 4% in September – in part due to continued supply disruptions caused by storms that swept through the Gulf of Mexico in the United States. Royal Dutch Shell Plc has said that a critical US oil production platform in the Gulf of Mexico will be out of service for the remainder of the year.
As oil fundamentals point to higher prices, a scheduled U.S. Federal Reserve meeting this week could signal the central bank to cut back on asset purchases, which could weaken global crude oil benchmarks .
- West Texas Intermediate for October delivery fell from $ 1.42 to $ 70.55 a barrel at 12:37 p.m. in New York
- Brent for November settlement fell $ 1.17 to $ 74.17 per barrel
Investors are also continuing to monitor the energy crisis in Europe amid talks about switching from gas to oil. The demand for diesel in Asia is expected to increase during the winter, while the use of petroleum to generate electricity in the United States may increase.