Crude oil prices slipped Tuesday, pressured as weak U.S. economic data hurt crude’s demand outlook, while reports of a third-quarter output decline from the world’s largest oil producers kept prices from falling further.
Brent crude futures lost 49 cents, or 0.8%, to $58.76 a barrel, while U.S. West Texas Intermediate crude dropped 67 cents, or 0.8%, to $53.62/Bbl, Kallanish Energy reports.
The daily slides followed Monday’s session in which both benchmarks posted their largest quarterly declines of the year, Reuters reported.
U.S. manufacturing activity tumbled to a more than 10-year low in September as the U.S.-China trade war weighed on exports, according to a survey from the Institute for Supply Management (ISM), Reuters reported.
The manufacturing activity index showed a reading of 47.8, according to the ISM report, shrinking for the second straight month and below economists’ expectations of 50.1. A reading below 50 indicates economic contraction.
Oil futures also tracked a loss in equities, which similarly took a hit from the factory data out of the world’s largest economy.
Crude production from Opec fell to the lowest point in eight years in September, at 28.9 million barrels per day (Mmbpd), down 750,000 Bpd from August’s revised figure and the lowest monthly total since 2011, a Reuters survey found, which led to a rally earlier in the session.
Output from the world’s two largest producers, the U.S. and Russia, also fell in July and September, respectively.
Russia’s output declined to 11.24 Mmbpd in Sept. 1-29, down from 11.29 Mmbpd in the previous month, sources said, although it’s still above the quotas set in an output deal between Russia, other non-Opec producers and Opec, collectively known as Opec+.
News that Saudi Aramco has restored full oil production and capacity to the levels they were at before attacks on two facilities on Sept. 14, weighed on oil prices Monday. Saudi Arabia pumped roughly 9.78 Mmbpd in August.
This post appeared first on Kallanish Energy News.