Crude oil prices fall after a rare Chinese statement on the release of reserves of oil products

Crude oil prices fall after a rare Chinese statement on the release of reserves of oil products
Crude oil prices fall after a rare Chinese statement on the release of reserves of oil products

© Reuters. An oil rig at the Shengli Oilfield in Shandong Province, photo from Reuters archive.

BEIJING (Reuters) – China said on Sunday it would release its reserves of gasoline and diesel to increase market supply and stabilize prices in some regions, in a rare statement analysts said was enough to bring down oil prices on Monday.

And West Texas Intermediate and West Texas Intermediate crude each fell 0.2 percent and 0.4 percent, respectively, after rising on Friday after the National Food and Strategic Reserves Administration in China announced on Sunday the release of gasoline and diesel reserves in what some market watchers described as the first statement of its kind in memory.

It is one of a number of attempts by Beijing to cool commodity price hikes that have slashed manufacturers’ profit margins. Earlier this year, China released other commodities from reserves, including rare releases of base metals, to cool prices.

“Rationalizing (oil) production should be more common than releasing oil reserves,” said Sanjik Te, an analyst at Beijing-based SIA Consulting, but such moves are not usually confirmed in official statements.

He said Sunday’s move could be the first time Beijing has announced the release of oil products.

“Words are greater than actions, (China) learned that from OPEC +,” he added, referring to supply communications from the alliance of major world oil producers that could have an impact on lowering market prices.

(Prepared by Ahmed Sobhi for the Arab Newsletter)

Explanation of the risks: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source

Crude oil prices fall rare Chinese statement release reserves oil products

 
For Latest Updates Follow us on Google News
 

PREV I do not include my friends in the Egyptian national team, and this is the story of the captaincy
NEXT Watch: 110: 112 Dramatic for Brooklyn over the Knicks