Oil prices dip as China PMIs disappoint, OPEC+ cuts in focus
Investing.com-- Oil prices fell in Asian trade on Thursday tracking weak economic signals from top importer China, with traders now holding out for an upcoming OPEC+ meeting where the cartel is widely expected to announce more supply reductions.
Crude prices were also headed for a second straight month of losses in November, hit by fears of worsening oil demand as economic conditions deteriorated across the globe. Slackening growth in China- the world’s top oil importer- remained a key point of contention for crude.
But oil still saw some measure of recovery this week after five straight weeks of losses. Support came from supply disruptions in Russia and Kazakhstan, a weaker dollar, and the prospect of production cuts by the Organization of Petroleum Exporting Countries and allies (OPEC+).
Brent oil futures expiring January fell 0.4% to $82.81 a barrel, while West Texas Intermediate crude futures fell 0.4% to $77.54 a barrel by 20:34 ET (01:34 GMT). Both contracts were set to lose between 3% and 5% in November.
Purchasing managers index (PMI) figures from China showed that manufacturing activity contracted further in November, while growth in overall business activity slumped to its weakest levels for the year.
The readings showed that recent monetary stimulus measures from Beijing had done little to shore up business activity, especially as local manufacturers saw an extended decline in overseas demand for goods and services.
Signs of a continued economic decline in the country spurred concerns over just how resilient Chinese oil demand will remain in the coming months. The country built up a large level of stockpiles this year, which could reduce its appetite for crude imports going into 2024.
Oil traders were
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