Oil falls on fears economic growth falters and weighs down demand

LONDON, Oct. 13 (Reuters) – Oil prices edged down on Wednesday as demand growth was expected to fall as inflation and supply chain issues weigh on major savings, although soaring power generation fuel prices limited losses.

Brent crude futures fell 76 cents, or 0.9%, to $ 82.66 a barrel at 1406 GMT. US West Texas Intermediate (WTI) crude futures fell 80 cents or 0.9% to $ 79.84 a barrel.

Weighing in on prices, China, the world’s largest importer of crude, released data showing September’s imports fell 15% from a year earlier. Read more

China, along with Europe and India, remain mired in coal and natural gas shortages that have driven up the prices of fuels used for power generation and are leading to the use of petroleum products as a substitute. .

The OPEC Producers Club said in its monthly report on Wednesday that record natural gas prices could boost demand for oil.

“If this trend continues, fuels such as fuel oil, diesel and naphtha could benefit from support, driven by higher demand for power generation, refining and petrochemical use,” said the ‘OPEC. Read more

The biggest problem for the markets, however, is the impact of the energy crisis, especially in the world’s second largest economy, China, on demand for oil.

“These are troubling times for China. A severe energy crisis is hitting the country,” said Stephen Brennock of broker PVM.

The International Monetary Fund slashed its growth outlook for the United States and other major economies on Tuesday, fearing that supply chain disruptions and cost pressures are slowing down the global economic recovery from the pandemic. Read more

A strong US dollar, trading near a year-ago high, has also weighed on oil prices, as it makes oil more expensive for those holding other currencies. Read more

The market is awaiting data on US oil inventories, delayed by a day after the Columbus Day holiday on Monday.

Data from the American Petroleum Institute, an industry group, is due Wednesday at 4:30 p.m. EDT (8:30 p.m. GMT) and from the US Energy Information Administration on Thursday.

Additional reporting by Sonali Paul in Melbourne and Florence Tan in Singapore; Editing by Emelia Sithole-Matarise, Barbara Lewis, Louise Heavens and Jan Harvey

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