The prices of oil futures fell on Monday coincidently after the publication of a new batch of economic data in Asia and the likely contraction in demand amid widening COVID-19 curbs. Earlier, the China Federation of Logistics and Purchasing (CFLP) said that the country’s manufacturing sector fell back into contraction territory in October. China’s National Bureau of Statistics (NBS) Purchasing Manager’s Index (PMI) stood at 49.2, dropping from September’s reading of 50.1. West Texas Intermediate (WTI) for deliveries in December fell by 0.96% at 7:48 am ET to sell for $87.06 per barrel. A minute later, Brent for inventories in the same month decreased by 1.13% to go for $94.69 per barrel.
UAE: OPEC+ to keep balancing oil supply and demand
United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui stated on Monday that the Organization of the Petroleum Exporting Countries and its partners (OPEC+) will remain a group that can be trusted with balancing oil supply and demand. Speaking at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), the minister reaffirmed that his country and the rest of OPEC+ remain committed to providing the planet with the necessary oil supply. Earlier this month, OPEC said in its newest report that the growth of the global demand for oil is expected to average 99.7 million barrels per day (bpd) in 2022, which is 0.5 million bpd less than the organization projected in September. NN :Oil is all over the charts. Basses Brent from a September 23 low of $82.30 to a recent high of $98.90 on October 3rd to a current price of $94.45 we have traded in a $7.00 range. Its really a volatile market that is struggling to price in a lot of factors. Remember its political. Governments did not want to admit they really blew it. From initiatives for renewables, to a trillion dollars invested in government solar and wind projects they failed. To make matters worse they stifled investment in proven fossil fuel projects. Now as governments fight among themselves they are blaming producers for the global energy crises. They are even using critical strategic emergency supplies is what will turn out to be a futile attempt to control price. This ends up in ever higher energy prices…. China covid quarantines will not save the day.