Oil prices have changed little, China ready to buy more report

Crude oil storage tanks are seen in an aerial photograph at the Cushing Oil Hub in Cushing, Oklahoma, USA, April 21, 2020. REUTERS / Drone Base / File Photo

  • Chinese Premier to Secure Energy and Electricity Supply
  • US oil stocks rise as production picks up after storms
  • Dollar hits year-long high as Fed tightens
  • OPEC + sticks to November production plans, despite $ 80 oil sources

NEW YORK, Sept. 30 (Reuters) – Oil futures did not change much on Thursday, with reports that China was ready to buy more oil and other energy supplies to meet growing demand, offsetting price pressure resulting from an unexpected increase in US crude inventories and a strong dollar.

Brent futures for November delivery fell 12 cents, or 0.2%, to $ 78.52 a barrel at 2:06 p.m. EDT (1806 GMT), while U.S. West Texas Intermediate (WTI) crude fell. increased 31 cents, or 0.4%, to $ 75.14.

Earlier today, prices at both benchmarks fell more than $ 1 a barrel.

Brent futures for December, soon to be the first month, rose 0.4% to $ 78.36 a barrel.

Chinese Premier Li Keqiang said the world’s largest crude importer and the world’s second-largest consumer will secure its energy, electricity supply and keep economic operations within a reasonable range.

“If China willingly pays a price for energy, it could intensify the energy crisis in Europe,” said Edward Moya, senior market analyst at OANDA.

UK gas stations are still experiencing unprecedented demand with more than a quarter of pumps still dry as the fuel crisis has reduced road traffic volumes to the lowest level since the end of COVID-19 lockdowns ago at two months. Read more

A possible drag on oil prices has been the electricity crisis and concerns in China’s housing market, which have rocked sentiment as any fallout for the world’s second-largest economy is likely to affect demand for oil, said analysts.

Chinese factory activity unexpectedly contracted in September amid tighter restrictions on electricity use and high input prices. Read more

Meanwhile, inventories rose in the number one consumer of oil, the United States. Government data released Wednesday showed U.S. oil and fuel inventories rose 4.6 million barrels to 418.5 million barrels last week.

The surge in US inventories last week came as production on the Gulf Coast returned to near levels reached before Hurricane Ida hit about a month ago.

Another bearish move, the US dollar (.DXY) hit a new year, making oil more expensive for holders of other currencies.

But expectations of a persistent crude supply shortage helped support prices.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, a group known as OPEC +, are expected to pledge next week to pledge to add 400,000 bpd to their oil production. November. Read more

“Rystad Energy expects the group to take a wait-and-see approach, not least because the group has yet to demonstrate its ability to rapidly increase oil supplies,” said Louise Dickson, senior oil markets analyst at Rystad Energy.

PVM analyst Tamas Varga said the expected growth in demand means that the agreed production increase would not be enough to keep inventories from falling for the remainder of the year.

Stalled talks between Iran and world powers to restore a 2015 nuclear deal will resume “soon,” European Union foreign policy chief Josep Borrell said on Thursday. A nuclear deal should allow Iran to export more crude. Read more

Additional reporting by Shadia Nasralla in London and Aaron Sheldrick in Tokyo; Editing by Marguerita Choy and David Evans

Our standards: Thomson Reuters Trust Principles.

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Felix J. Dixon

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