Oil Dips as Traders Weigh Surplus Outlook and Chinese Data
Oil slipped near the lowest level in almost two months, with prices pulled by mixed economic data from China and global output that’s running ahead of consumption.
Brent was below $61 a barrel in thin trading ahead of the Christmas and New Year holidays. China’s apparent oil demand and refining activity in November were higher than a year earlier, but other monthly figures signaled weakness in the broader economy.
Oil is set for an annual loss, with supply set to exceed demand this year and next. Concerns about the glut are showing up in the key Middle Eastern crude market, though geopolitical uncertainty has injected some risk premium into prices.
There are plenty of geopolitical inputs at play, including US-led efforts to end the war in Ukraine, attacks on shipping in the Black Sea and the risk of US military action in Venezuela after the Trump administration detained a supertanker last week.
“Oil is range trading today,” said Giovanni Staunovo, a commodity analyst at UBS Group AG. The softness in Chinese economic data is preventing markets from moving higher, he added.
Brent for February settlement was down 0.4% at $60.87 a barrel as of 2:00 p.m. in London.
West Texas Intermediate for January delivery fell 0.5% to $57.15 a barrel.
Source : Bloomberg
