Brent futures fell 39 cents, or 0. 4 percent, to $92. 75 a barrel.
SINGAPORE (Reuters) – Oil costs prolonged early Asian industry losses on Tuesday after OPEC cut its global forecast for 2022, while emerging COVID-19 cases in China clouded prospects for fuel consumption in the world’s most sensitive crude-importing country.
Brent futures were down 39 cents, or 0. 4 percent, at $92. 75 a barrel at 01:33 GMT after stabilizing at 3 percent on Monday. West Texas Intermediate crude rose to $85. 31 a barrel, down 56 cents, or 0. 7 percent, after falling 3. 5 percent in the last session.
The Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for global oil expansion for 2022 for the fifth time since April, bringing with it developing economic challenges, adding top inflation and emerging interest rates.
This comes after the International Monetary Fund said on Sunday that the global economic outlook had become bleaker than expected last month, prompting a steady deterioration in managers’ surveys in recent months.
Meanwhile, while investors cheered China’s announcements last week that it would reduce the effect of a strict zero-COVID policy to boost economic activity and energy demand, ANZ analysts said emerging cases remain a major problem risk.
“Lately, the market is defying imminent source risks, despite expectations that the latest requested downward revision may be negative for OPEC’s oil production source,” analysts said, referring to tight European Union sanctions on Russian oil exports.
Elsewhere, oil production in the Permian Basin is expected to hit a new record of 5. 499 million barrels per day (bpd) in December, the U. S. Energy Information Administration (EIA) said on Monday. You can use the U. S. in your monthly productivity report.
However, aging shale regions appear to decline production consistently, leading to a buildup in overall U. S. crude oil production. The U. S. economy in shale regions rose from just 91,000 bpd to 9,191 million bpd in December, despite a rise in prices, the EIA said. (Reporting via Florence Tan; Editing via Kenneth Maxwell)
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