Oil falls as souring Chinese sentiment filters through markets

Oil falls as souring Chinese sentiment filters through markets

Oil declined as sentiment soured over China following the conclusion of the party congress, filtering through broader markets.

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West Texas Intermediate slipped below $84 a barrel on Monday as investors also digested a raft of delayed Chinese economic data that showed a mixed recovery during the third quarter.

A stronger dollar added to headwinds, making commodities priced in the currency less attractive.

Crude has lost a third of its value since June as fears over a global economic slowdown continue to hang over the market.

However, significant OPEC+ output cuts and looming European Union sanctions on Russian oil flows have raised concerns about the supply outlook heading into winter.

“Oil will remain choppy as recession risks and supply tightening balance each other out,” said Gao Jian, a Shandong-based analyst with Zhaojin Futures Co.

“The market will focus on compliance rates for OPEC+’s production cuts next month and whether the US will initiate counter-measures by adding supply.”

The decision by the Organization of Petroleum Exporting Countries and its allies to curb supply from November has drawn a sharp rebuke from the US, which previously called on producers for more oil to help curb inflation.

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