Brent slips as weak Chinese data outweighs supply crunch concerns

The front-month ICE Brent contract has shed $1.47/bbl on the day, to $86.39/bbl at 09.00 GMT.

PHOTO: Getty Images

Upward pressure:

Brent futures gained some upward momentum after the Organization of the Petroleum Exporting Countries (OPEC) released its flagship monthly oil market report. The oil producer group has forecast global oil demand to grow by 2.4 million b/d, broadly unchanged from its earlier projection.

The core 13 OPEC member countries produced 27.31 million b/d of crude oil in July, down 836,000 b/d from the previous month.

Additionally, the International Energy Agency (IEA) has forecast global oil demand to grow by 2.2 million b/d to 102.2 million b/d in 2023, with China accounting for more than 70% of growth.

Downward pressure:

Downward pressures acting on Brent this week include recent Chinese import data for the month of July.

China’s total crude oil imports in July were about 43.69 million mt, a dip of 18.8% from June, reported market intelligence provider JLC, citing data released by China’s General Administration of Customs (GACC).

Concerns about demand growth in the world’s largest oil importer have kept a lid on rise in Brent futures.

By Aparupa Mazumder

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