Oil extends losing streak after Saudi cuts price, China import slows

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Oil extends losing streak after Saudi cuts price, China import slows

Both US and UK crude futures’ prices were plunged on Monday with both of the futures clucking their fourth straight session of losses, as the OPEC-kingpin Saudi had confirmed its steepest monthly price cuts on supplies for Asia in five months, while confusing data regarding China’s economic recovery from the pandemic-propelled slump had led to further decline.

In factuality, customs data from China released earlier on Monday might have charter the courses for the oil futures’ prices on Monday as the world’s largest oil importer had witnessed a decline in imports in August due to a curb in domestic demands.

Apart from China import data for August, Saudi’s tentative decision to trim the prices of its Arab light-grade crudes for Asia by $0.50 per barrel had frozen the hopes of market participants’ further.

Oil woes as China imports fall, Saudi slashes prices for Asian markets

Citing statistics, on Monday’s commodity market round off, UK crude futures’ prices had wrapped up the day 1.5 per cent lower to $42.03 per barrel, while the US WTI (West Texas Intermediate) crude futures had faltered as much as 1.7 per cent to settle down the day at $39.10.

US and Brent crude futures had been plunged as much as 3.2% and 3.9% respectively on Friday’s market closure, clocking weekly percentage declines despite upbeat openings of the week. Meanwhile, adding that the distinctive move from Saudi to curb its crude prices had been aimed at addressing a steep lag of demand in Asia amid a worrisome spike in pandemic cases, a Rystad Energy analyst Paola Rodriguez-Masiu said on the day’s commodity market closure, “The decrease was interpreted by the markets as a sign that the demand recovery in the region, home to the second and third largest oil consumers, is running out of steam,” while referring to a soaring market whisper about Beijing’s so-called turnaround from the pandemic-driven fiscal slump, a director for energy markets and securities at IEA (International Energy Agency), Keisuke Sadamori said, “There are so many uncertainties with regard to the Chinese economy and their relationship with key industrialised countries, with the U.S. and these days, even Europe.