China’s economic GDP report for the period of July to September which shows a 4.9% growth has halted oil prices gain today.
While the report is a sign of recovery from the pandemic for the top oil importer, it was also below expectations. It is boosting the concern of the impacts of coronavirus resurgence on the demand in China.
Brent crude for December slid 30 cents, to $42.63pb. The U.S. West Texas Intermediate crude for November, a contract which ends Tuesday was down 27 cents to $40.61pb.
The oil product inventories in the United States, declined last week, and oil prices reversed losses after that.
China is expected to slow down on oil purchase in the fourth quarter as a factor of poor import quotas for autonomous refiners and high inventories.
The previous week held a more critical outlook on oil prices with OPEC+ forecasting a rapid decline in demand after its Joint Techincal Committee meeting.
They fear that the oil market could go into surplus next year by the jump in Libyan output along with a prolonged second wave. The surplus also threatens the OPEC and OPEC+ production cut plans.
Later on Monday, the Joint Ministerial Monitoring Committee (JMMC) meeting of the OPEC+ group is going to hold.
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