Oil prices fluctuate due to the declining assistance from China's economic recovery measures

5 Sep 2023 , 10:28 AM

Tuesday saw a mixed performance for oil prices as support from China’s economic stimulus measures disappeared and hopes of an extension of production curbs by two major OPEC+ members, Saudi Arabia and Russia, were neutralised.

The price of a barrel of November Brent crude futures dropped by 10 cents, or 0.11%, to $88.90. October West Texas Intermediate crude (WTI) futures were up 33 cents, or 0.39%, at $85.88.

According to Russia’s deputy prime minister, a new OPEC+ production cut agreement will be announced this week, and Saudi Arabia is widely anticipated to prolong its voluntary oil cutbacks through October.

On the down side, markets have mostly factored in China’s recent economic stimulus measures, countering support from anticipated oil supply reduction.

Household spending in Japan, the third-largest economy in the world, decreased by 5.0% in July from a year earlier, exceeding the 2.5% decline that was anticipated and extending the downward trend into a fifth month.

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