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SINGAPORE, Aug 15 (Reuters) – Oil prices fell for a second session on Monday as weak Chinese economic data raised concerns about demand from the world’s biggest crude importer, while the head of the world’s top exporter , Saudi Aramco, said it was ready to ramp up. up the exit.
Brent crude futures fell 89 cents, or 0.9%, to $97.26 a barrel as of 0034 GMT after falling 1.5% on Friday. U.S. West Texas Intermediate crude was at $91.27 a barrel, down 82 cents, or 0.9%, after falling 2.4% in the previous session.
China’s economy unexpectedly slowed in July as refinery output fell to 12.53 million barrels per day, its lowest level since March 2020, government data showed. Read more
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“Official data suggests oil demand is weakening as domestic logistics and consumer demand are discouraged by record oil prices at the pump,” said Heron Lin, economist at Moody’s Analytics.
Saudi Aramco is ready to increase crude oil production to its maximum capacity of 12 million barrels per day (bpd) if requested by the Saudi government, chief executive Amin Nasser told reporters on Sunday.
“We are confident in our ability to increase our production up to 12 million bpd whenever there is a need or a call from the government or the energy ministry to increase our production,” Nasser said. He added that China’s easing of COVID-19 restrictions and a recovery in the aviation industry could boost demand.
Oil prices rebounded more than 3% last week after a damaged pipeline element disrupted production at several offshore platforms in the Gulf of Mexico and investors reduced expectations for a rate hike. interest in the United States.
Producers had decided to reactivate some of the suspended production after repairs were completed Friday night, a Louisiana official said. Read more
Energy services company Baker Hughes Co (BKR.O) reported on Friday that the number of U.S. oil rigs rose by 3 to 601 over the past week. The rig count, an early indicator of future output, has been slow to grow, with oil production only recovering from pandemic-related cuts next year.
Global oil markets remained supported by tight supplies ahead of EU sanctions on Russian supplies of crude oil and refined products this winter. Read more
More supplies could arrive if Iran and the United States accept an offer from the European Union to revive the 2015 nuclear deal, which would lift sanctions on Iranian oil exports, analysts said. Read more
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Reporting by Florence Tan; Editing by Kenneth Maxwell
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