(MENAFN- Trend News Agency)
Oil prices dropped for a second session on Monday as weak China
economic data triggered concerns about demand at the world's
largest crude importer while the head of the world's top exporter,
Saudi Aramco, said it was ready to ramp up output, Trend reports with reference
to Reuters .
Brent crude futures fell 89 cents, or 0.9%, to $97.26 a barrel
by 0034 GMT after settling 1.5% lower on Friday. U.S. West Texas
Intermediate crude was at $91.27 a barrel, down 82 cents, or 0.9%,
after a 2.4% drop in the previous session.
China's economy unexpectedly slowed in July, while refinery
output tumbled to 12.53 million barrels per day, its lowest since
March 2020, government data showed.
'The official data suggests that oil demand is weakening as
domestic logistics and consumer demand are deterred by the record
high oil pump prices,' said Heron Lin, an economist at Moody's
Analytics.
Saudi Aramco stands ready to raise crude oil output to its
maximum capacity of 12 million barrels per day (bpd) if requested
to do so by the Saudi Arabian government, Chief Executive Amin
Nasser told reporters on Sunday.
'We are confident of our ability to ramp up to 12 million bpd
any time there is a need or a call from the government or from the
ministry of energy to increase our production,' Nasser said. He
added that China's easing of COVID-19 restrictions and a pickup in
the aviation industry could add to demand.
Oil prices rebounded more than 3% last week after a damaged oil
pipeline component disrupted output at several offshore Gulf of
Mexico platforms and as investors pared back expectations for
interest rate increases in the United States.
Producers had moved to reactivate some of the halted production
after repairs were completed late Friday, a Louisiana official
said.
Energy services firm Baker Hughes Co reported on Friday that
U.S. oil rig count rose by 3 to 601 last week. The rig count, an
early indicator of future output, has been slow to grow with oil
production only seen recovering from pandemic-related cuts next
year.
Global oil markets remained supported by tight supplies in the
run-up to EU sanctions on Russian crude oil and refined product
supplies this winter.
More supplies could come if Iran and the United States accept an
offer from the European Union to revive the 2015 nuclear deal,
which would will lift sanctions on Iranian oil exports, analysts
said.
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