Oil Falls as China Cuts Crude Imports; OPEC Decision Weighs

Reuters

NEW YORK, June 8 (Reuters) - Oil fell by 1 percent or more on Monday on a slump in Chinese demand and worries that OPEC's decision to pump crude without restraint could prolong the current supply glut, although a weaker dollar limited losses.

China, the top net oil importer in the world, bought about a quarter less crude oil in May than it did in April, official data showed on Monday. In the oil products category, imports fell by more than 6 percent, against a 10 percent drop in exports.

Refineries in China used more crude from stockpiles last month, leading to lower imports, the data suggested. A higher number of processing plants for crude that were offline for maintenance was also cited for the lower demand.

Still, some traders said the 26 percent month-on-month drop in crude imports, based on May's arrival of 5.47 million barrels per day versus April's record 7.37 million barrels bpd, was an anomaly.

"A 4-6 percent drop is acceptable for refinery maintenance season in China, but 20 percent or more is a sign of demand collapse," said Bob Yawger, director of energy futures at Mizuho Securities USA.

Phil Flynn, an analyst at Chicago-based Price Futures Group, said a continuous slump in Chinese demand could be a "game changer" for oil bulls determined to see Brent futures at above $65 a barrel and U.S. crude futures at above $60 a barrel.

Brent settled down 62 cents, or 1 percent, at $62.69 a barrel.


123

View Full Article

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
United States Canonsburg: Proposals Specialist
Expertise: Business Development|Marketing|Sales
Location: Canonsburg, PA
 
Instrumentation & Electrical Project Estimator
Expertise: Electrician|Estimating|Project Management
Location: Spring, TX
 
Pricing Analyst - Amarillo, TX Job
Expertise: Accounting|Budget / Cost Control|Cost Engineer
Location: Amarillo, TX
 
search for more jobs

Brent Crude Oil : $51.46/BBL 4.63%
Light Crude Oil : $48.9/BBL 4.78%
Natural Gas : $3.18/MMBtu 0.90%
Updated in last 24 hours