Crude oil

Oil Prices Drop as China Cuts Importation

Oil prices dropped on Tuesday, as summer peak driving season in the US was almost over, while China reported that it had imported 11.18 million bpd of crude oil in August, less than 12.08 million bpd in July and below April’s record of 12.94 million bpd.

Also weighing sentiment was the upcoming maintenance for US refineries, which Reuters reported that it could cut oil demand by 1.5 million to 2 million bpd.

Meantime, Saudi Arabia on Monday cut the October official selling price for Arab light crude it sells to Asia by the biggest margin since May.

At the same time, fresh tension between India and China heightened, with Beijing Monday accusing Indian troops of violating a bilateral agreement and firing warning shots in the air during a confrontation on the disputed border. At around 03:45 AM GMT, WTI crude tumbled by 2% to $38.99 a barrel, while Brent crude fell 0.2% to $41.91 a barrel.

Trading Economics

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