Analysis Market overview

BRENT overview 16.08.2021

Oil falls in weaker projected demand from China.

Oil under the bearish pressure today – falling more than 1%, after official report showed that refining throughput and economic activity slowed in China, which is seen by the markets as the indicator that fresh COVID-19 outbreaks are crimping the world’s second largest economy. Factory output and retail sales growth slowed sharply in July in China missing expectations as fresh outbreaks of COVID-19 and flooding disrupted business activity. Weaker-than-expected growth data from China, which is a major consumer of oil, and the resultant lowered demand expectations, is the main driver of the recent losses for oil. China’s crude oil processing last month also fell to the lowest on a daily basis since May 2020, as independent refiners cut production amid tighter quotas, elevated inventories and falling profits.

Expect sellers on upward corrections.

Next support to watch – 67,4

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