Oil prices declined over 1% on Monday as Chinese economic data highlighted demand from the world’s biggest crude importer was tame last month.
December settlement for Brent crude futures lowered US$1, or 1.1%, to US$92.50 a barrel after a 2% hike last week as strict Covid policies and fuel export curbs depressed Chinese consumption.
US West Texas Intermediate crude, meanwhile, was at US$84.02 a barrel – down US$1.03, or 1.2%.
China’s September crude imports of 9.8mln barrels per day were 2% lower than a year earlier.
Uncertainty surrounding China’s zero-Covid policy and its property crisis has been undermining the effectiveness of pro-growth measures, ING analysts said, even despite third quarter GDP growth exceeding expectations.
Data on Monday came just a day after the country’s Xi Jinping secured a third leadership term, making him China’s most powerful ruler since Mao, Reuters noted.
Brent prices jumped last week even with American president Joe Biden announcing the sale of 15mln barrels of as part of a record 180mln barrel release that started in May.
The US president added he intended to replenish stocks when US crude hits approximately US$70 a barrel.
"Biden's comments that the US will only buy crude once prices hit US$70 [per barrel] provides a strong support level," ANZ analysts commented.