(New York) Oil prices hovered around equilibrium to end in a mixed bag on Monday, tossed between the impact of OPEC’s production cuts and worries about Chinese demand.
A barrel of Brent from the North Sea, for delivery in October, fell 0.07% to 84.42 dollars.
Its US equivalent, a barrel of West Texas Intermediate (WTI), for same-month delivery, rose 0.33% to $80.10.
Trading was weak as the London market was closed (a public holiday).
“The market is trying to get between Saudi Arabia’s production cuts and China’s demand destruction,” said Robert Yawger of Mizuho USA.
China, which is experiencing an economic slowdown, announced on Sunday the halving of the tax on stock transactions, a significant measure intended to restore confidence in the world’s second largest stock market.
These measures seem to be deemed insufficient by the market, believes Robert Yawger, to revive demand and prices for black gold. “The situation in China is not good: the stimulus measures are small in caliber when it would take a bazooka,” summed up the analyst.
The economic health of China, the world’s largest crude importer, is being scrutinized by investors, with significant consequences for global demand.
Brokers were also monitoring storm Idalia in the Gulf of Mexico in the United States, which could become a hurricane as it approaches Florida.
“I don’t think it’s going to impact production” and refineries concentrated on the coast, “but it may change the dynamics of exports and imports” as tankers won’t be able to navigate in this heavy weather, said explained Mr. Yawger.
