OIL PRICES

摘要

Prices for Brent and WTI have edged down in recent weeks, although they are currently fluctuating around US$45-49 for Brent and US$43-47 for WTI. More downbeat sentiment surrounding the Chinese economy is weighing on prices. The Brent spot rate inched up to US$47.46 on November 9 while WTI reached US$44.52 on the back of Chinese crude imports rising 9.4% (y-o-y) in October. The Chinese data reflect crude inventory buildup and domestic refineries taking advantage of low prices (although m-o-m crude imports fell by 5.7%, and overall imports saw a sharper-than-expected y-o-y drop). Oil prices are also supported by the ongoing decline in operating oil rigs in the US as the shale industry reduces production. Despite the slowdown in US output, oversupply continues to haunt the global crude markets.