crude oil futures Brent -reference for Argentina- they lost $3.05, or 3.1%, to $95.10 a barrel, after falling 1.5% on Friday. The futures of US West Texas Intermediate (WTI) fell $2.68, or 2.91%, to $89.41 a barrel. after falling 2.4% in the previous session.
Brent futures traded near their lowest level since before Russia sent troops to Ukraine on February 24, while WTI futures hit their lowest level since early February on Monday.
The central bank of China, the world’s largest oil importer, cut interest rates on loans to revive demandat a time when data showed the economy unexpectedly slowed in July, with industrial and retail activity held back by Beijing’s zero-COVID policy and a housing crisis.
The country’s refinery output fell to 12.53 million barrels per day (bpd), its lowest level since March 2020, according to government data.
ING bank cut its forecast for China’s GDP growth in 2022 to 4%, down from a previous projection of 4.4%, and warned that a further downgrade is possible.
Open interest on Brent crude this month is down 20% from August last year. “Open interest continues to fall, with some (market players) not interested in touching it due to volatility. That is, in my opinion, the reason that results in higher volumes to the downside,” said the oil analyst at UBS CEO Giovanni Staunovo, adding that the trigger for Monday’s decline was weak data from China.
Meanwhile, the dollar index rose to about the middle of its range this month. Oil is generally priced in dollars, so a stronger US currency makes the product more expensive for holders of other currencies.
Talks to revive the 2015 Iran nuclear deal were also in the spotlight on Monday. Crude supply could rise if Iran and the United States accept an offer from the European Union, which would lift sanctions on Iranian oil exports, analysts said.
Source: Ambito
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