Daily Times

Crude oil prices went down around two percent for the third straight session on Monday, as a risk-off wave has engulfed the financial markets amid concerns over a potential default by China’s highly indebted developer Evergrande, besides expectations of return of US Gulf output.

At 1045 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $1.19 (-1.58 percent) to reach $74.15 a barrel. Similarly, the US West Texas Intermediate (WTI) reached $70.61 a barrel, down by $1.36 (-1.89 percent). The price for Opec Basket was recorded at $74.17 a barrel with 1.2 percent increase, Arab Light was available at $74.29 a barrel with a 0.32 percent decrease, while the price of Russian Sokol slipped to $75.23 after shedding 0.30 percent.

According to experts, the fears looming over the troubled Chinese property developer have ignited global slowdown concerns, which, in turn, weighs on the demand prospects for oil and its products. Amidst risk-aversion and Fed’s tapering expectations, the US dollar stands tall at monthly tops, making the greenback-denominated WTI expensive for foreign buyers. Exerting additional downward pressure on oil prices was a rise in US oil rigs count and expectations of returning US Gulf oil output after the two hurricanes, they added. As of Friday, 23 percent of US Gulf of Mexico crude output, or 422,078 barrels per day, remained shut, according to the Bureau of Safety and Environmental Enforcement.

According to experts, attention now turns towards the weekly US crude stockpiles data due to be published later in the week for fresh trading incentives.