Business News Asia
Oil prices neared their lowest level in two months Monday as supply concerns eased. Meanwhile, concerns about China’s fuel demand and rising interest rates weighed on prices.
- Brent crude futures were down 28 cents, or 0.3%, at $87.34 a barrel.
- WTI crude oil futures were at $80 a barrel, down 8 cents.
Tight crude oil supplies in Europe have eased as refiners stockpiled ahead of the Dec. 5 deadline for European Union sanctions on Russian crude to take effect. This is putting pressure on crude oil markets in Europe, Africa and the United States.
The EU energy policy chief said the European Union is expected to finalize several regulations in time for the Dec. 5 release of the G7 plan to cap Russian crude prices.
However, the diesel market remains tight as Europe and the U.S. compete for diesel fuel. China’s diesel exports nearly doubled year-on-year in October to 1.06 million tons, but volumes were lower than September’s 1.73 million tons.
Demand in the world’s largest crude importer remains constrained by COVID-19 restrictions, while expectations of further interest rate hikes in the U.S. are pushing the dollar higher, weighing on dollar-traded commodities.
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Monday, November 21, 2022