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Ammon News - Oil prices fell more than 1% on Monday after Chinese data showed demand from the world’s biggest crude importer remained weak in September as strict COVID-19 policies and fuel exports curbed consumption.

Brent crude futures for December settlement fell $1, or 1.1%, to $92.50 a barrel. barrel at 0609 GMT after a 2% gain last week. US West Texas Intermediate crude for December delivery was at $84.02 a barrel. barrel, down $1.03 or 1.2%.

Although China’s September crude imports of 9.79 million barrels per day were higher than in August, they were 2% lower than a year earlier, customs data showed on Monday, as independent refiners curbed throughput amid thin margins and weak demand.

“The recent recovery in oil imports faltered in September,” ANZ analysts said in a note, adding that independent refiners failed to take advantage of increased quotas as ongoing COVID-related shutdowns weighed on demand.

“This was exacerbated by declining refinery margins and product export restrictions,” the analysts said.

Saudi Arabia and Russia were neck and neck as China’s top two suppliers in September.


Uncertainty about China’s zero-Covid policy and property crisis are undermining the effectiveness of growth-promoting measures, ING analysts said in a note, even as third-quarter gross domestic product (GDP) growth beat expectations.

The GDP data came a day after China’s Xi Jinping secured an unprecedented third term as leader on Sunday, cementing his place as the country’s most powerful ruler since Mao Zedong.

Brent rose last week despite US President Joe Biden announcing the sale of the remaining 15 million barrels of oil from the US strategic oil reserves. The sale is part of a record release of 180 million barrels that began in May.

Biden added that his goal would be to rebuild stocks when U.S. crude is around $70 a barrel. barrel.

“Biden’s comments that the US will only buy crude once prices hit $70/barrel provide a strong level of support,” ANZ said.

Last week, U.S. energy companies added oil and natural gas rigs for a second straight week as relatively high oil prices encouraged companies to drill more, energy services firm Baker Hughes Co said in a report on Friday.