Oil dips on weak demand outlook


    SINGAPORE- Oil prices eased on Monday amid persistent concerns about the global economic outlook and the impact on oil demand, while Russia again missed its target to cut oil output last month.

    Global benchmark Brent crude oil futures fell by 10 cents, or 0.2 percent, to $59.32 a barrel.

    U.S. crude oil futures were down by 9 cents, or 0.2 percent, to $53.69.

    “Commodity markets continue to struggle amid weak economic data,” said ANX Bank in a note.

    China’s economic growth slowed to 6 percent year-on-year in the third quarter, its weakest in 27-1/2 years and short of expectations due to soft factory production and continuing trade tensions.

    Still, a 9.4 percent year on year increase in China’s refinery throughput for September signaled that petroleum demand from the world’s biggest oil importer remained robust.

    On the supply side, Russia said on Sunday it produced more oil in September than envisaged by a global deal due to an increase in gas condensate output as the country prepared for winter.

    The Organization of the Petroleum Exporting Countries (OPEC), Russia and other oil producers, an alliance known as OPEC+, agreed in December to reduce supply by 1.2 million barrels per day (bpd) from the start of this year.

    But several countries, including OPEC kingpin Saudi Arabia, have complained about Russia’s failure to comply with the deal in full.

    Talks between OPEC members Kuwait and Saudi Arabia to restart oil production from jointly-operated fields in the 500,000 bpd Neutral Zone added to concerns of rising supplies. – Reuters