empty
31.10.2022 11:39 PM
Oil falls in price due to bad news from China

This image is no longer relevant

Data on the economic situation in China reduces the appeal of oil, and the cost of raw materials falls on Monday.

December futures for Brent on London's ICE Futures exchange fell 1.16% to $92.69 per barrel.

Quotes of WTI futures for December in electronic trading on the New York Mercantile Exchange fell by 1.72% to $86.41 per barrel.

According to published statistics, the Purchasing Managers' Index (PMI) in China's manufacturing industry in October fell to the lowest level since July - to 49.2 points (in September this figure was at the level of 50.1).

Experts on average expected a decline, but not as sharp. PMI services in China in October fell to 48.7 points, indicating a significant decline in activity in this sector.

Tight quarantine measures in China threaten the demand for fuel. And today it became known that from October 26 to October 30, quarantine was again introduced in the city of Wuhan. And all because of the fact that new cases of coronavirus infection were identified in the city.

As for the operating oil and gas drilling rigs in the USA, following the results of the last week (October 22-28), their number decreased by 3 units - up to 768 units.

But at the same time, in October their number increased for the first time since July. Drilling activity remained stable, although there were relatively high energy prices and a sharp decrease in profits. This was reported on Friday by the oilfield service company Baker Hughes.

Despite the decrease following the results of the reporting week, in general, in October the number of operating oil and gas drilling rigs turned out to be 224 units, or 41%, higher than last year.

And yet, the market ends the month up nearly 10%, largely thanks to OPEC+'s decision to cut production by 2 million bpd from November.

OPEC's annual World Oil Outlook (WOO) report says that oil will retain the largest share of the global energy mix until at least 2045. In other words, oil will remain the number one fuel in the world energy balance, the share will decrease from 31% to just under 29%. The total share of oil and gas is expected to remain above 50%.

At the same time, OPEC increased oil demand in its forecast by 1.6 million barrels per day. Demand is expected to increase to 109.8 million barrels per day in 2045. But the organization still expects oil demand to virtually stop growing after 2035.

Andreeva Natalya,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for March 17

US markets rally on Friday: S&P 500 gains 2.1%, Nasdaq Composite rises 2.6% The US stock market ended the week on a high note, as if the recent turbulence never

Natalia Andreeva 14:04 2025-03-17 UTC+2

Fed against trade war. Can monetary policy rescue economy?

The US stock market continues to experience turmoil, driven by uncertainty surrounding Donald Trump's stance on import tariffs. Investors are eagerly awaiting the Federal Reserve's meeting next week, hoping

13:23 2025-03-17 UTC+2

Fed vs. Tariff War: Will Monetary Policy Save the Economy?

The U.S. stock market continues to be shaken by Donald Trump's uncertain stance on import tariffs. Investors are eagerly awaiting next week's Federal Reserve meeting, hoping for hints

Thomas Frank 10:07 2025-03-17 UTC+2

US Market News Digest for March 14

Yesterday, the S&P 500 index hit the target level of 5,516 – the same level as June 20, 2024, which is the 23.6% Fibonacci retracement of the entire rally from

Natalia Andreeva 10:34 2025-03-14 UTC+2

Gold hits record high at nearly $3,000 an ounce. Why are investors dumping stocks en masse?

Wall Street indexes down 1%, S&P 500 confirms correction Trump's tariff changes affect sentiment Gold hits all-time high at $2,993.80 an ounce The US dollar fell against

Thomas Frank 09:40 2025-03-14 UTC+2

Clash of corporate giants: Intel stock soars, PepsiCo loses ground

Intel shares jumped following news that TSMC has extended a joint venture to American chip manufacturers. PepsiCo, on the other hand, fell due to a brokerage downgrade. The latest

10:42 2025-03-13 UTC+2

US Market News Digest for March 13

Intel shares saw an uptick following news of a proposal by TSMC to support US chip manufacturers. This development bolstered investor confidence in the semiconductor sector. Meanwhile, PepsiCo shares came

Ekaterina Kiseleva 10:09 2025-03-13 UTC+2

Intel Stocks Soar, PepsiCo Loses Support: Who Will Win the Race?

Intel Jumps After TSMC Unveils JV with U.S. Chipmakers PepsiCo Slips After Broker Downgrade CPI Shows February Inflation Slowed More Than Expected Indices: Dow Down 0.20%, S&P 500 Up 0.49%

Thomas Frank 05:43 2025-03-13 UTC+2

US Market News Digest for March 12

The S&P 500 is trading lower, but it could reverse upward: oscillators signal a turnaround Trade wars escalate: Trump imposes new tariffs, markets respond with losses. The S&P

Irina Maksimova 10:48 2025-03-12 UTC+2

Business vs. Trump: Companies Lose Billions Due to Tariff Policy

The Number of Vacancies in the US Increased to 7.74 Million in January Kohl's Falls Due to Dismal Annual Sales Forecast Airlines Put Pressure on Dow Transports Trump Maintains Tariff

Thomas Frank 10:42 2025-03-12 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.