Disappointing demand for oil in China during September is weakening oil prices on Monday morning. It is still wide-scale shutdowns in China that are affecting consumption.

A barrel of European reference crude Brent trades at USD 92.99 on Monday morning against USD 94.27 during the night and USD 92.51 on Friday afternoon. US counterpart West Texas Intermediate costs USD 84.56 against USD 85.85 during the night and USD 84.23 on Friday afternoon.

The lack of demand for oil was reflected in the long-awaited key figures for September, which up until Monday had been postponed indefinitely.

China’s oil imports totaled 9.79 million barrels per day in September, corresponding to a decline of 2 percent in comparison to September last year.

At the same time, independent refineries have decreased production following low margins and failing demand.

”The recent recovery in oil imports faltered in September,” write analysts from ANZ in a note, according to Reuters, adding that several refineries haven’t been able to use the extra capacity during shutdowns.

China’s zero-tolerance policy regarding Covid outbreaks is still leading to concern among traders, even though key figures for September proved better than expected.

The central numbers have been released after Chinese President Xi Jinping secured his third period as government head, making him the most powerful state leader in China since Mao Zedong, according to Reuters.

English edit: Kristoffer Grønbæk

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