Yahoo Finance Oil Prices Pares Losses on Reports of Saudi Refinery Explosion
Investing.com - Oil prices pared losses on Tuesday, following reports of an explosion at Saudi Arabia’s Sasref refinery caused by a gas leak, which revived worries over supply disruptions.
U.S. West Texas Intermediate crude was down 23 cents, or 0.4%, to $53.36 by 08:42 AM ET (12:42 GMT), up from a session low of $52.39, while international benchmark Brent was down 15 cents or 0.1% at $59.25.
Oil prices had been pressured lower earlier, extending losses into a second session, as weak economic data underlined concerns over the outlook for global growth and concerns over the prospects for a U.S. - China trade deal weighed.
Data earlier on Tuesday showed that German investor sentiment worsened again in October amid concern that Europe's biggest economy is headed for a recession.
Meanwhile, a report overnight showed that China's factory gate prices declined at the fastest pace in more than three years in September. That came after customs data on Monday showing that Chinese imports contracted for a fifth straight month in September.
The weak data added to worries over the global economic fallout from the protracted Sino-U.S. trade war, despite claims of progress toward a deal, and added to doubts over the future outlook for oil demand.
"Demand-side concerns emerging from the Sino-U.S. trade war have continued to weigh on oil prices," said Abhishek Kumar, head of analytics at Interfax Energy in London. "China's weak economic data is a manifestation of the trade dispute," he said.
On Monday U.S. President Trump imposed sanctions on Turkey and demanded the NATO ally stop a military incursion in northeast Syria that is rapidly reshaping the battlefield of the world's deadliest ongoing war.
Prices could also get a boost this week as investors are expecting a drawdown in crude inventories in the United States.
"This week ... markets are expecting to see a draw (on) U.S. stockpiles and possibly further escalations in the Middle East," said Edward Moya, senior market analyst at OANDA.
The next weekly U.S. oil inventory reports are due out from industry group the American Petroleum Institute and the U.S. Energy Information Administration on Oct. 16.
--Reuters contributed to this report
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