Slowing Chinese growth underscores worries about demand
Crude-oil prices fell Monday, as China’s third-quarter gross-domestic-product data underscored worries about slowing consumption.
The world’s second-largest economy grew by 6.9%, the slowest pace since 2009, though that still topped forecasts for 6.8%.
Crude futures for delivery in November CLX5, -1.23% traded at $46.65 a barrel, down 61 cents, or 1.3%. December Brent crude on London’s ICE Futures exchange LCOZ5, -1.57% fell 78 cents, or 1.6%, to $49.68 a barrel.
Besides concerns about China’s GDP data, a supply overhang has also put downward pressure on crude oil.
Members of the Organization of the Petroleum Exporting Countries have continued to pump oil into markets, even though oil supplies are at near-record levels.
Despite decelerating U.S. oil production, oil inventories continue to rise because of routine seasonal maintenance shutdowns by oil refiners.
“I am expecting to see U.S. crude oil inventories rise as refinery capacity is low at the moment,” said Daniel Ang, an analyst at Phillip Futures.
He said manufacturing activity data out of China, the U.S. and eurozone later in the week would also determine the near-term direction of crude oil.
Although China’s GDP data weighed on the immediate market sentiment, there are signs of a slight upturn in the country’s property sector as well as a better outlook for the auto sector.
Nymex reformulated gasoline blendstock for November RBX5, -1.57% — the benchmark gasoline contract — lost 2 cents, or 1.7%, to trade at $1.306 a gallon.
