Oil prices dip on weak demand outlook, supply concerns

By Roslan Khasawneh
SINGAPORE, Oct 21 (Reuters) - Oil prices eased on Monday
amid persistent concerns about the global economic outlook and
the impact on oil demand, while Russia again missed its target
to cut oil output last month.
Global benchmark Brent crude oil futures LCOc1 fell by 10
cents, or 0.2%, to $59.32 a barrel by 0108 GMT.
U.S. crude oil futures CLc1 were down by 9 cents, or 0.2%,
to $53.69.
"Commodity markets continue to struggle amid weak economic
data," said ANX Bank in a note.
China's economic growth slowed to 6% year-on-year in the
third quarter, its weakest in 27-1/2 years and short of
expectations due to soft factory production and continuing trade
tensions. Still, a 9.4% year on year increase in China's refinery
throughput for September signalled that petroleum demand from
the world's biggest oil importer remained robust. On the supply side, Russia said on Sunday it produced more
oil in September than envisaged by a global deal due to an
increase in gas condensate output as the country prepared for
winter. The Organization of the Petroleum Exporting Countries
(OPEC), Russia and other oil producers, an alliance known as
OPEC+, agreed in December to reduce supply by 1.2 million
barrels per day (bpd) from the start of this year.
But several countries, including OPEC kingpin Saudi Arabia,
have complained about Russia's failure to comply with the deal
in full.
Talks between OPEC members Kuwait and Saudi Arabia to
restart oil production from jointly-operated fields in the
500,000 bpd Neutral Zone added to concerns of rising supplies.
Kuwait's deputy foreign minister on Saturday said
negotiations were "very positive" after Kuwaiti media, citing
unidentified sources, said the two Gulf oil producers had agreed
to resume crude output from oilfields in the Saudi–Kuwaiti
divided zone. "Those extra barrels will come to market at a most unwelcome
time," said Stephen Innes, market strategist at AxiTrader
referring to crude oil production from the Neutral Zone.