Oil prices dip on weak demand outlook, supply concerns
Global benchmark Brent crude oil futures LCOc1 fell by 10 cents, or 0.2%, to $59.32 a barrel by 0108 GMT.
U.S. crude oil futures CLc1 were down by 9 cents, or 0.2%, to $53.69, informs Reuters.
“Commodity markets continue to struggle amid weak economic data,” said ANX Bank in a note.
China’s economic growth slowed to 6% year-on-year in the third quarter, its weakest in 27-1/2 years and short of expectations due to soft factory production and continuing trade tensions.
Still, a 9.4% year on year increase in China’s refinery throughput for September signaled that petroleum demand from the world’s biggest oil importer remained robust.
On the supply side, Russia said on Sunday it produced more oil in September than envisaged by a global deal due to an increase in gas condensate output as the country prepared for winter.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and other oil producers, an alliance known as OPEC+, agreed in December to reduce supply by 1.2 million barrels per day (bpd) from the start of this year.
But several countries, including OPEC kingpin Saudi Arabia, have complained about Russia’s failure to comply with the deal in full.
Talks between OPEC members Kuwait and Saudi Arabia to restart oil production from jointly-operated fields in the 500,000 bpd Neutral Zone added to concerns of rising supplies.