• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • BOE Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

Oil prices slide on China COVID worries, cut in OPEC demand outlook

November 15, 20227:30 AM Reuters0 Comments

Pump jack in Saskatchewan winter.

Oil prices slid on Tuesday as rising COVID-19 cases in China sparked fears of lower fuel consumption from the world’s top crude oil importer and after OPEC cut its 2022 global demand forecast.

U.S. West Texas Intermediate crude was at $84.88 a barrel, down 35 cents, or 0.42%, after tumbling 3.5% in the previous session. 

CL1! chart by TradingView
Brent crude futures fell 30 cents, or 0.32%, to $92.16 a barrel after settling down 3% on Monday.

While investors cheered China’s announcements last week that it would lessen the impact of a strict zero-COVID policy to spur economic activity and energy demand, analysts said lockdowns and surging case numbers continue to be a key downside risk.

“Rolling lockdowns across heavily populated areas in China penalize mobility and oil demand even more than economic activity,” said Stephen Innes, managing partner at SPI Asset Management, in a note.

The country’s factory output growth slowed, retail sales fell and property slumped further in October, the latest sign that the world’s second-largest economy is losing momentum as it struggles with protracted COVID curbs and a property downturn.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) cut its 2022 global oil demand growth forecast for a fifth time since April, citing mounting economic challenges including high inflation and rising interest rates.

This comes after the International Monetary Fund said on Sunday the global economic outlook has become gloomier than projected last month, citing a steady worsening in purchasing manager surveys in recent months.

“The market is currently defying looming supply risks, despite expectations that the latest demand downgrade could be supply-negative for OPEC oil output,” analysts from ANZ Research said in a note, referring to imminent European Union sanctions on Russian oil exports.

The EU embargo on Russian oil, in retaliation to Russia’s invasion of Ukraine, is set to start on Dec. 5. The ban will be followed by a halt on oil product imports in February.

U.S. crude oil stocks were expected to have dropped by about 300,000 barrels in the week to Nov. 11, a preliminary Reuters poll showed on Monday.

Elsewhere, oil output in the Permian Basin is set to hit another record of 5.499 million barrels per day (bpd) in December, the U.S. Energy Information Administration (EIA) said in its monthly productivity report on Monday.

However, aging shale regions are showing weaker per-well output, causing overall U.S. crude oil production in shale regions to rise by a mere 91,000 bpd to 9.191 million bpd in December, despite a surge in prices, the EIA said.

Follow BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Petrus Resources announces monthly activity update
  • Alberta to contribute to CCUS after Ottawa commitments
  • Energy bill passes U.S. House, sends to Senate
  • Oil steadies as U.S. crude draw offset by Russian supplies, stronger dollar
  • RCMP arrest five people near natural gas pipeline construction site in northern B.C.

Return to Home
Alberta GasMonthly Avg.
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    BOE Network
    © 2023 Stack Technologies Ltd.