Brent crude is the world’s largest oil importer The currency fell more than 3% to $69.52 on Tuesday as weak economic data from China and the US, the largest oil consumer, raised risk sentiment. completed.
The US manufacturing industry Purchasing Managers Index (PMI) from the Institute for Supply Management (ISM) 47,2Despite rising to , it fell short of market expectations. S&P Global’s manufacturing sector PMI data was also released in August 47,9 was realized below the estimates.
China import data fuels recession concerns
China’s August foreign trade surplus exceeded expectations with $91 billion, while exports rose by 8.7 percent, exceeding expectations. Imports, on the other hand, fell short of expectations with a 0.5 percent increase. The import data, which came in below expectations in the country, which is the region’s most important importer and exporter, fueled concerns about a recession. In line with the data in question, Brent oil has been trading below $75 for the last two weeks. The price of a barrel of Brent oil rose to $72.8 yesterday and ended the week at $71.71, losing 0.15 percent compared to the previous trading day. completed.
Experts say weak macroeconomic data in global markets indicate Prices are expected to remain below $80 for some time after falling demand and efforts to broker a ceasefire in the Middle East he had anticipated watching.
The OPEC group is limited in what it can do
Independent oil market analyst Gaurav SharmaThe decline in oil prices is due to the large amount of oil in the market and the fact that it is the world’s largest oil importing country. Declining demand globally, especially in China “There is not much the OPEC group can do if non-OPEC supply remains strong as it is now,” Sharma said, noting that prices could fall for a while before recovering.
Osama Rizvi: Manufacturing sector in the US has been shrinking continuously for the last 7 months
Energy and Economic Analyst at Primary Vision Network, an international data company Osama Rizvi He also stated that the latest development that played an active role in the decline in oil prices was the data indicating that the US economy was not in good shape. Rizvi drew attention to the fact that the situation became serious after non-farm employment in the US increased by 142 thousand people in August, below expectations, and said, “In addition, the US manufacturing sector has been in continuous contraction for the past seven months. Meanwhile, China’s oil demand has also slowed, and the country saw its first annual decline in oil imports since 2000” he made his assessment.
For this reason, the OPEC+ group decided to postpone the production increase planned to start in October after the decline in prices, Rizvi said.If supply from non-OPEC countries continues to increase and oil demand remains volatile, the ‘oil price wars’ we saw in 2014 could happen again” he said.
Source: www.dunya.com
