Oil prices have changed little, China ready to buy more report
- 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 prices wiped out most of their losses and were little changed on Thursday following reports that China was ready to buy more oil to meet growing demand.
Brent futures for November delivery fell 11 cents, or 0.1%, to $ 78.53 a barrel at 11:43 a.m. EDT (1543 GMT), while U.S. West Texas Intermediate (WTI) crude fell. increased 48 cents, or 0.6%, to $ 75.31.
Brent futures for December, soon to be the first month, rose 0.3% to $ 78.30 a barrel.
Earlier today, prices fell more than $ 1 a barrel due to higher US crude oil inventories and a strong dollar.
Phil Flynn, senior analyst at Price Futures Group in Chicago, said the rise in futures prices late in the morning was due to a report that China was ready to buy more oil.
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.
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.
In another generally bearish development, the US dollar <.dxy> hit a new year high earlier today, making oil more expensive for holders of other currencies. [USD/]
But expectations of a persistent crude supply shortage helped support prices. Citigroup predicts that oil balances will be in deficit by 1.5 million barrels per day (bpd) on average over the next six months, even with a continued increase in supply.
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
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.
Additional reporting by Shadia Nasralla in London and Aaron Sheldrick in Tokyo; Editing by Marguerita Choy and David Evans
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