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Oil falls on recession fears; Supply concerns limit purchases

Oil falls on recession fears;  Supply concerns limit purchases
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Crude oil storage tanks are seen in an aerial photograph at the Cushing Oil Hub in Cushing, Oklahoma, the United States, April 21, 2020. REUTERS/Drone Base

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SINGAPORE, Sept 19 (Reuters) – Oil prices fell on Monday as fears of a global recession fueled fears that fuel demand growth will slow, although supply worries ahead of the European Union’s embargo on Russian oil in December limited the decline .

Brent crude futures for November settlement were down 46 cents, or 0.5%, to $90.89 a barrel by 0701 GMT.

U.S. West Texas Intermediate (WTI) crude futures for October delivery were at $84.46 a barrel, down 65 cents, or 0.8%. The October WTI contract expires on Tuesday and the more active November contract is at $84.12, down 64 cents.

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Both contracts were up more than $1 on Monday. Last week, oil futures fell more than 1% on fears that another Federal Reserve rate hike could slow global growth.

The dollar took a bullish turn Monday as investors braced for a packed week of central bank meetings where borrowing costs are certain to rise globally, with some risk of an outsized hike in the United States. A stronger US dollar makes dollar-denominated commodities more expensive for holders of other currencies. Continue reading

Despite fears of dampening fuel demand, ongoing supply concerns limited the price decline.

“The market is still hanging over the start of European sanctions on Russian oil. With supply disrupted in early December, the market is unlikely to see a quick response from US producers,” ANZ analysts said on Monday.

The easing of COVID-19 restrictions in China could also provide some optimism, analysts said.

China has started to ease COVID curbs in Chengdu, a southwestern city of more than 21 million, which has helped allay concerns about demand in the world’s top industry. 2 energy consumers. China’s gasoline and diesel exports also rebounded, reducing high local inventories after Beijing issued new quotas. Continue reading

Meanwhile, the chief executive of Kuwait Petroleum Corporation (KPC) said on Sunday that its customers are asking for the same amounts. The Gulf state is currently producing more than 2.8 million barrels of oil per day according to its OPEC quota, he said. Continue reading

Oil shipments and exports from Iraq’s Basra oil terminal returned to normal rates on Saturday, Basrah Oil Company said, a day after being halted over a now-contained oil spill. Continue reading

In Nigeria, Shell’s 200,000-bbl-per-day Bonga deep-water storage and offloading vessel is due for maintenance in October, a spokesman said Sunday.

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Reporting by Florence Tan and Jeslyn Lerh; Edited by Lincoln Feast, Shri Navaratnam and Christian Schmollinger

Our standards: The Thomson Reuters Trust Policy.

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