Oil falls more than 1 dollar due to uncertainty about China’s growth

TOKYO, June 19 (Reuters) – Global oil prices fell more than $1 on Monday, reversing gains from last week, as doubts about China’s economy outweighed OPEC+ output cuts and the seventh drop. consecutive year in the number of oil and gas rigs operating in the United States. state

Brent crude lost $1.15, or 1.5%, to trade at $75.46 a barrel by 0350 GMT, while US West Texas Intermediate (WTI) crude was down $1.09, or 1.5%. , at $70.69.

Last week, Brent posted a 2.4% gain and WTI rose 2.3%.

“China’s economic uncertainties may have caused the sell-off after a two-day rally in oil markets ahead of the People’s Bank of China (PBOC) decision on its LPRs this week,” Tina Teng said. , CMC Markets analyst. .

Several major banks have cut their 2023 gross domestic product growth forecasts to Porcelain after data for May last week showed the post-COVID recovery in the world’s second-largest economy was faltering.

The PBOC is widely expected to cut its benchmark lending prime rates on Tuesday, following a reduction in medium-term policy lending last week to shore up a shaky economic recovery.

Sources have told Reuters that China unroll More stimulus support for its slowing economy this year, but concerns about debt and capital flight will keep measures aimed at shoring up weak demand in the private and consumer sectors.

Still, output from China’s refineries rose in May to their second-highest total on record, helping boost earnings last week, and US energy firms. cut the number of oil and natural gas platforms in operation for the seventh consecutive week for the first time since July 2020.

The oil and gas rig count, an early indicator of future production, fell 8 to 687 in the week to June 16, the lowest level since April 2022.

Oil prices on Monday are also lower on expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, or OPEC+, will struggle to meet production quotas, Edward Moya said, OANDA Senior Analyst.

“Rosneft is suggesting that the cartel of oil producers is focused on exports and not production,” Moya said, referring to comments made by Igor Sechin, head of major Russian energy company Rosneft. (ROSN.MM).

Speaking at an economic forum on Saturday, Sechin said it would be appropriate for OPEC+ control oil export volumes as well as production quotas due to the different sizes of the internal markets of each country.

Earlier this month, OPEC+ agreed to a new oil production deal. The group’s largest producer, Saudi Arabia, also fiance to make a deep cut to its production in July.

Reporting by Katya Golubkova in Tokyo and Emily Chow in Singapore; Edited by Tom Hogue

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