Crude Oil Market Edges Lower on Chinese Demand, Stronger Dollar

The crude oil market depreciated on Monday as data showed that demand from China remained lacklustre in September, with the US Dollar growing stronger, putting pressure on the commodity.

At the market yesterday, the Brent crude futures lost 24 cents or 0.3 per cent to settle at $93.26 a barrel as the US West Texas Intermediate (WTI) crude futures fell by 47 cents or 0.6 per cent to $84.58 a barrel.

The market reacted as data showed that China’s September crude imports of 9.79 million barrels per day were 2 per cent below a year earlier levels.

The world’s largest crude importer brought in 40.24 million tonnes of crude oil last month, equivalent to about 9.79 million barrels per day. While that was up from 9.5 million barrels per day in August, shipments remained below the nearly 10 million barrels per day imported a year earlier.

Imports for the first three quarters of the year totalled 370.4 million tonnes, or about 9.9 million barrels per day, 4.3 per cent below the corresponding period last year. This marks the first annual decline for this period since at least 2014.

China’s fuel demand took a hard hit as the country’s drastic COVID-19 curbs stifled travel and manufacturing activities.

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