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Oil is Mixed in Early Asia Amid Reduced Support from China

Oil prices were mixed in early Asian trade on Tuesday as a loss of support from China’s measures to shore up its economy offset expectations of an extension of supply cuts by the two main OPEC+ members, Saudi Arabia and Russia.

Brent crude futures for November delivery were down 10 cents, or 0.11 percent, to trade at $88.90 a barrel by 0029 GMT. US West Texas Intermediate (WTI) crude futures for delivery in October were up 33 cents, or 0.39 percent, to trade at $85.88 a barrel.

Saudi Arabia is expected to extend its voluntary oil cuts through October, and Russia will announce a new OPEC+ supply cut deal this week, according to its deputy prime minister.

“Data released last week showed that increased exports from Iran and Nigeria were offset by a decline in Saudi Arabian production,” ANZ Research said in a note, adding that news from Russia also helped ease concerns about increased supply in other countries.

On the downside, the overall market has priced in China’s recent steps to boost the country’s economy, which offset support from expected oil supply cuts.

In Japan, the world’s third-largest economy, household spending in July fell 5.0 percent from a year earlier, deeper than the forecast decline of 2.5 percent and extending into a fifth month of decline.

Source : Antara