An aerial view shows tugboats helping to land a crude oil tanker at an oil terminal near Wadiao Island in Zhoushan, Zhejiang province, China on July 18, 2022. Licensing rights obtained via CNSPhoto Reuters/File Photo
SINGAPORE, Sept 11 (Reuters) – Oil prices fell in early Asian trading on Monday as economic concerns in China weighed on the fuel demand outlook, although Brent remained above $90 a barrel, helped by Saudi Arabia. And the supply reduction was supported by Russia’s supply cuts.
By 0022 GMT, Brent crude fell 49 cents, or 0.5%, to $90.16 a barrel, while U.S. West Texas Intermediate crude was down 74 cents, or 0.9%, at $86.77 a barrel.
“Concerns about Chinese economic growth weighed on sentiment across all commodities,” ANZ analysts said in a note.
“The move was exacerbated by a stronger US dollar, which kept investors interested,” he said, referring to the greenback, which has been rising for eight straight weeks.
Both contracts have risen for the past two consecutive weeks, with Brent hitting its highest level since November on Friday, after Saudi Arabia and Russia announced last week that they would produce a combined 1.3 million barrels per day by the end of the year. Will extend voluntary supply cuts.
The International Energy Agency and the Organization of Petroleum Exporting Countries (OPEC) are scheduled to release their monthly reports this week.
“Any signs of strong demand from oil market reports from the IEA and OPEC are likely to push oil prices higher,” ANZ analysts said.
In the United States, producers added an oil rig last week for the first time since June, Baker Hughes said in its weekly report, but the total number was still down by 127, or 17%, from last year.
IG analyst Tony Sycamore said in a note that WTI is in the process of marking a new high at resistance levels above $83 and below $93.50 in the coming weeks, due to concerns about demand in China and Europe. May increase further.
Reporting by Florence Tan
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