Oil Update: Prices for oil steady after sharp declines in last session

Oil prices were relatively steady on Tuesday after falling to their lowest in the last few weeks. The prices went down with stronger dollar and decline in Chinese refinery runs.

Global benchmark Brent crude futures were up 3 cents, or 0.1 percent, at $50.76 at 0551 GMT. That was just above the contract's 100-day moving average, briefly breached in the previous session.

U.S. West Texas Intermediate crude futures were down 1 cent at $47.58 a barrel.

Prices for oil decline more than 2.5% on Monday, due to demand concerns from China. Both Brent and WTI had reached two-month highs on Aug. 10.

Chinese demand has been weakening, as the refineries in China were operating at their lowest output since September 2016, official releases revealed on Monday.

Analysts said the drop was steeper than expected, exacerbating concerns that a glut of refined fuel products could weaken Chinese demand for oil.

The dollar index, which measures the greenback against a basket of six major currencies, climbed 0.4 percent on Monday and was up 0.1 percent on Tuesday.

An announcement by the Nigerian subsidiary of Royal Dutch Shell that it had lifted a force majeure on Bonny Light crude exports also added to market surplus woes.

Oil prices had earlier on Monday been supported by reports that Libya's top oilfield had cut its output by 30 percent on security concerns.

Posted on: 2017-08-15T13:32:00+05:00