Moscow. On 2 November. The price of oil stable on Monday, WTI becomes cheaper on the background of weak statistical data from China, reports Bloomberg.
The cost of December futures for Brent crude on London’s ICE Futures exchange to 8:33 in Moscow rose to $0,02 (0,04%) to $49,58 per barrel. By the close of market on Friday, the futures price increased by $0,76 (1,56%) – to 49,56 per barrel.
Futures price for WTI crude oil for December in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time $0,23 (0,49%) – to $46,36 per barrel. At the end of trading on Friday, the contract rose $0,53 (1,15%), to $46,59 per barrel.
During last week Brent oil grew in price by 3.3%, WTI – by 4.5%.
The index of business activity in the manufacturing sector of China in October pointed to continued weakness in this sector of the economy, remained below 50 points.
The purchasing managers index (PMI) in the process industries, published by Caixin and Markit, in October rose to 48.3 points from 47.2 in September. A similar index published by the National Bureau of statistics, has not changed and amounted in October to 49.8 points. Analysts polled by Bloomberg, expected an average of 50 points.
“The ongoing downturn in China’s manufacturing sector increases downward pressure on oil market, since the risk of reduction of demand for oil, – the analyst in the resources sector Samsung Futures Inc. Hong Sung Ki. – It is expected that Iran will increase production by 500 thousand barrels per day (b/d), however, it is important how quickly they can ramp up production after the lifting of sanctions”.
The Iranian oil Minister Bijan Namdar Zanganeh said in an interview with Mehr news Agency that the planned increase in the country of production volume by 500 thousand b/d immediately after the lifting of sanctions will not lead to a sharp drop in oil prices, since these expectations are already incorporated in the current price of oil.
He noted that the country expects to increase production by 1 million b/d by the end of March next year.