Oil Prices Pares Losses on Reports of Saudi Refinery Explosion


© Reuters.

Investing.com – pared losses on Tuesday, following reports of an explosion at ’s Sasref refinery caused by a leak, which revived worries over supply disruptions.

was down 23 cents, or 0.4%, to $53.36 by 08:42 AM ET (12:42 GMT), up from a session low of $52.39, while international was down 15 cents or 0.1% at $59.25.

Oil prices had been pressured lower earlier, extending losses into a second session, as weak economic data underlined concerns over the outlook for global growth and concerns over the prospects for a U.S. – China trade deal weighed.

Article continues below Advertisement...

Data earlier on Tuesday showed that German worsened again in October amid concern that Europe’s biggest economy is headed for a recession.

Meanwhile, a report overnight showed that China’s declined at the fastest pace in more than three years in September. That came after customs data on Monday showing that Chinese imports contracted for a fifth straight month in September.

The weak data added to worries over the global economic fallout from the protracted Sino-U.S. , despite claims of progress toward a deal, and added to doubts over the future outlook for oil demand.

“Demand-side concerns emerging from the Sino-U.S. trade war have continued to weigh on oil prices,” said Abhishek Kumar, head of analytics at Interfax in London. “China’s weak economic data is a manifestation of the trade dispute,” he said.

On Monday U.S. President imposed sanctions on Turkey and demanded the NATO ally stop a incursion in northeast Syria that is rapidly reshaping the battlefield of the world’s deadliest ongoing war.

Prices could also get a boost this week as investors are expecting a drawdown in crude inventories in the United States.

“This week … are expecting to see a draw (on) U.S. stockpiles and possibly further escalations in the ,” said Edward Moya, senior market analyst at OANDA.

The next weekly U.S. oil inventory reports are due out from industry group the and the U.S. on Oct. 16.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest forms possible.

Source: Investing.com


Please enter your comment!
Please enter your name here