NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Oil prices little changed ahead of China GDP data

Published 19/10/2020, 01:44
© Reuters. FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County
LCO
-
CL
-

By Florence Tan

SINGAPORE (Reuters) - Oil prices edged up in early Asian trade on Monday ahead of China's economic growth data, which is expected to show recovery in the top oil importer, offsetting concerns of an impact from the virus' resurgence on consumption and rising supply.

Brent crude for December (LCOc1) inched up 4 cents to $42.97 a barrel by 0018 GMT and U.S. West Texas Intermediate crude (CLc1) was at $40.90 a barrel, up 2 cents, a day before the November contract expires.

China will release third-quarter GDP data at 0200 GMT; its economy most likely grew 5.2% in July-September from a year earlier, as consumers resurfaced and major trading partners reopened for business, shaking off a record slump seen earlier this year.

However, China's oil-buying frenzy is expected to slow in the fourth quarter amid high inventories and limited import quotas for independent refiners.

Brent rose 0.2% last week while WTI gained 0.7%, after crude and oil product inventories in the United States, world's top oil consumer, fell last week.

However, last week's discussions at a panel of officials from the Organization of the Petroleum Exporting Countries Russia and allies, a group known as OPEC+, showed that the oil market's outlook is gloomier than a month ago.

The Joint Technical Committee fear a prolonged second wave of the COVID-19 pandemic and a jump in Libyan output could push the oil market into surplus next year in its worst-case scenario, according to a confidential document seen by Reuters.

Such a surplus could threaten plans by OPEC, Russia and allies, known as OPEC+, to taper record output cuts made this year by adding 2 million barrels per day of oil to the market in 2021.

© Reuters. FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County

U.S. House Speaker House Speaker Nancy Pelosi said on Sunday that she is optimistic on coronavirus relief deal before Election Day although differences remain with President Donald Trump's administration on a wide-ranging coronavirus relief package.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.