Oil prices fall after biggest weekly gain since April

Brent fell to $82 a barrel after rising 3.8 percent last week, its first weekly gain in four. West Texas Intermediate was near $78. China is scheduled to release industrial production and crude oil refining figures for May.

China’s oil refining – known as crude output – is expected to be flat or fall this year for the first time in two decades, barring a drop in 2022 due to Covid-19, according to most market watchers polled by Bloomberg. The nation processed a record volume in 2023 as demand rebounded.

Oil has been trending lower since early April on signs of robust supply and concerns over demand, particularly from China. OPEC recently rocked the market with a plan to dial back more production this year, forcing key members to make clear that the group can halt or reverse output changes if necessary.

“Crude has room for growth,” said Gui Chenxi, an analyst at CITIC Futures Co. The third quarter is typically peak season globally and should lead to increased oil processing and demand, she added.

Date of first publication: 17 Jun 2024, 08:21 IST