Oil Prices Pares Losses on Reports of Saudi Refinery Explosion

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Investing.com – Oil prices pared losses on Tuesday, following reports of an explosion at Saudi Arabia’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 benchmark 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 deal weighed.

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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 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. trade war, 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 Trump imposed on Turkey and demanded the NATO ally stop a military 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 in the .

“This week … markets 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

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Source: Investing.com

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