Notizie economiche
10.09.2024

Oil prices resumed their decline after yesterday's rise

Oil prices fell more than 1%, reversing yesterday's gains and returning to 2024 lows, as weak Chinese demand offset U.S. supply disruptions from Tropical Storm Francine.

The tropical storm is forecast to strengthen significantly over the next couple of days, and was expected to become a hurricane on Monday night or Tuesday morning, according to the National Hurricane Center (NHC). Meanwhile, analysts said that due to the deteriorating weather situation, at least 125,000 barrels per day of oil capacity is at risk of being disrupted.

However, oil prices remained under pressure due to signs of weakening global demand and expectations of existing oil oversupply. China reported yesterday that producer prices continued to decline in August, as Beijing maintained efforts to reinvigorate domestic demand. The producer price index fell by 1.8% per annum versus expectations for a decline of 1.4% following the 0.8% drop a month earlier. It marked the 23rd straight month of producer deflation and the highest figure since April. Meanwhile, today's report showed that exports grew more than expected in August, while imports growth weakened sharply amid weak domestic demand. Exports grew by 8.7% per annum, faster than the 7% increase in July. This was the fastest expansion in 17 months. Economists had forecast shipments to climb 6.5%. At the same time, imports grew only 0.5% after rising 7.2% in July. Economists had expected an increase of 2%. Thus, the latest data has only increased concerns about demand, which have been lingering in the market for some time.

Later today, investors will focus on the monthly oil market report from the OPEC. The U.S. Energy Information Administration is also set to publish its short-term energy outlook.

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