Crude oil was under pressure at the start of the week as bleak economic data from top crude buyer China renewed concerns of a global recession and the market monitored talks on a reviving deal that would allow more Iranian oil exports.
The early weakness was compounded after disappointing Chinese economic data renewed concerns of a global recession that would be expected to reduce fuel demand. Also in China, the country’s refinery output slipped to 12.53 million barrels per day (bpd), its lowest since March 2020, government data showed.
A stronger U.S. Dollar also weighed on foreign demand for dollar-denominated crude. Talks to revive the 2015 Iran nuclear deal, which will lead to increased supply was another excuse to sell crude.
Crude oil could have a hard time mounting a reasonable rally over the short-run unless there is an unexpected supply disruption. Although there could be a bounce if Iran rejects the latest Nuclear Deal proposal.
The early weakness was compounded after disappointing Chinese economic data renewed concerns of a global recession that would be expected to reduce fuel demand. Also in China, the country’s refinery output slipped to 12.53 million barrels per day (bpd), its lowest since March 2020, government data showed.
A stronger U.S. Dollar also weighed on foreign demand for dollar-denominated crude. Talks to revive the 2015 Iran nuclear deal, which will lead to increased supply was another excuse to sell crude.
Crude oil could have a hard time mounting a reasonable rally over the short-run unless there is an unexpected supply disruption. Although there could be a bounce if Iran rejects the latest Nuclear Deal proposal.