Sharp Decline: Chinese Ghosts Cause 8% Drop in Oil Prices This Week.

Written by Paulo Nogueira

Published on 22/11/2023 at 12:55

Petróleo continua trajetória descendente, com fraqueza de demanda na China no radar (Imagem: REUTERS/Regis Duvignau)

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Oil Futures Contracts Ended Another Session of the Week in the Negative, Due to Weak Demand Signals from the Chinese Economy.

Oil futures contracts recorded another day of decline, reflecting the weak demand from the Chinese economy. WTI fell by 4.93%, reaching US$ 72, while Brent dropped 4.39%, hitting US$ 77, marking the lowest value in four months.

Investors are concerned about the fuel refining data in China, which showed a decline of 2.8% compared to October, contributing to the pressure on oil prices.

The reduction in crude oil processing is directly linked to the slowdown in industrial activity in China, as evidenced by the unexpected drop in the purchasing managers’ index (PMI) in October.

ARTICLE CONTINUES BELOW

Slowdown in Fixed Investments Affects Industrial and Infrastructure Sectors

A significant decrease in fixed investments has been observed, mainly affecting infrastructure projects and the industrial sector. The approval of the new round of stimulus for the construction sector through increased public spending is still pending, and its effects are expected to be felt more concretely in the coming months, as highlighted by economist Sophie Altermatt from Julius Baer.

Despite the concern of the market with recent data, the OPEC and the International Energy Agency (IEA) believe that the demand for oil may increase, particularly in Asia.

According to a report released earlier in the week, the cartel of oil producers thinks that the market’s reaction is exaggerated and believes that the global economy is more resilient than expected, which may result in higher energy consumption.

At the last general meeting, the OPEC decided to maintain the oil production cut policy unchanged. This reflects the cartel’s more positive outlook on global demand, which led the International Energy Agency (IEA) to raise its consumption projection by 100,000 barrels per day (bpd). As a result, global oil consumption is expected to grow by 2.4 million bpd by the end of 2023.

Source: Money Times

Sharp Decline: Chinese Ghosts Cause 8% Drop in Oil Prices This Week.

Oil Futures Contracts Ended Another Session of the Week in the Negative, Due to Weak Demand Signals from the Chinese Economy.

Slowdown in Fixed Investments Affects Industrial and Infrastructure Sectors

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Sharp Decline: Chinese Ghosts Cause 8% Drop in Oil Prices This Week.

Oil Futures Contracts Ended Another Session of the Week in the Negative, Due to Weak Demand Signals from the Chinese Economy.

Slowdown in Fixed Investments Affects Industrial and Infrastructure Sectors

Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

Australia prepares to dredge 96.5 million m³ in Moreton Bay to deepen, widen, and realign channels of the Port of Brisbane, in a project of up to 25 years designed to accommodate larger ships and enhance maritime safety and regional port efficiency.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Cristiano Ronaldo builds a billion-dollar mansion in Portugal with 54,000 square feet, a 3-acre plot facing the Atlantic, private spa, indoor and outdoor pools, and an estimated value of an impressive R$ 385 million.

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Family finds oil on a 49-hectare site in Ceará, but exploration has no timeline or guarantee of happening

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While Brazil has been dragging its feet on the Rio-São Paulo bullet train for 30 years, California has turned its own into a zombie project: 18 years, $126 billion, 60 viaducts completed, and zero meters of track laid, with Trump cutting $4 billion in July.

While Brazil has been discussing the Maracanã renovation for 25 years and struggles to keep the Arena MorumBis open, Abu Dhabi signs a $1.7 billion deal to build the world’s second Sphere on an artificial island, with 20,000 seats, by 2029.

Supermarket giant buys 12 stores, Distribution Center, and two chains and accelerates expansion

Brazil erects a digital wall along 16,886 km of borders with 10 countries, using sensors, radars, military communications, and the Army’s decision-making system to protect one of the largest land stretches on the planet and showcase the technological strength of national defense.

For the first time in history, a submarine cable will descend to four thousand meters deep under the ice of the North Pole to ensure that the internet between Europe and Asia no longer depends on conflict zones in the Middle East.