Oil dips as China tries to contain coal crisis

  • 20-10-2021, 15:01
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    Follow-up - INA 

    Oil prices fell, on Wednesday, after the Chinese government intensified its efforts to curb the record rise in coal prices and operate coal mines at full capacity to ease the energy shortage crisis .

    Prices of Chinese coal and other commodities fell in early trading, which in turn led to lower oil prices after a slight rise earlier in the day .

    Brent crude futures fell 0.8 percent to $84.44 a barrel, by 06:45 GMT, giving up its 75-cent rise in the previous session, but still near its highest levels in several years .

    The US West Texas Intermediate crude futures contract for the month of November, which expires on Wednesday, fell 56 cents to $82.4 a barrel. Next December contracts fell 59 cents (equivalent to 0.7 percent) to $81.85 a barrel .

    Oil markets in general are still supported against the backdrop of the global coal and gas crisis, which led to the shift to diesel and fuel oil for power generation .

    But the market came under pressure today, Wednesday, due to data from the American Petroleum Institute that showed a rise in US crude stocks by 3.3 million barrels in the week ending October 15, 2021, according to market sources .