Oil prices fell on Tuesday, despite concerns regarding tight fuel supplies ahead of the winter, dispelling the impact of investor fears regarding falling demand in China, the world’s largest importer of crude.
Brent crude futures fell 1.44 percent to $92.55 a barrel during trading. While US West Texas Intermediate crude futures fell 1.29 percent to $ 86.57.
Concerns regarding low inventories continue to support prices.
Data from the US Department of Energy showed that the strategic petroleum reserve fell by 8.4 million barrels to 434.1 million barrels in the week ending on the ninth of September, its lowest level since October 1984.
In March, US President Joe Biden laid out a plan to withdraw one million barrels per day over six months from the strategic reserves to mitigate the rise in US fuel prices, which contributed to fueling inflation.
And limiting the gains made by oil prices on Tuesday, concerns regarding the decline in global demand for fuel, as China, the second largest oil consumer in the world, continues to impose restrictions to address the outbreak of the Covid-19 pandemic in its cities.
Official data showed a decrease in the number of trips that took place during the three-day Mid-Autumn Festival holiday in China, as well as a drop in tourism revenues, due to the reluctance of many people to travel due to the restrictions related to the pandemic.
(Archyde.com)