Crude oil prices dipped yesterday on weak economic data out of China, despite the Organisation of Petroleum Exporting Countries (OPEC) reassurances that global demand is strong and its production cuts are starting to balance oil markets.
U.S. crude oil prices fell 0.2 per cent to $51.55 per barrel. Brent was down 0.3per cent to $60.31.
Exxon Mobil shares was flat at 71.72 on the stock market today. Chevron fell 0.6 per cent to 11.64. BP (BP) edged rose 0.4 per cent. Royal Dutch Shell (RDSA) was up 0.2 per cent.
China reported import and export declines in December, fueling continued fears of slowing economic growth.
But Saudi energy minister Khalid Al Falih tried to ease worries, saying there is little to no impact from U.S.-China trade tensions on the demand for oil.
“The global economy is strong enough, I’m not too concerned. If a slowdown happens, it will be mild, shallow and short,” Al Falih said at a conference in Abu Dhabi.
OPEC and U.S. shale producers are typically seen two competing sides in the market share race, but Al Falih disagrees.
U.S. producers “call me when they see the price band drop down and they see investors starting to turn away, and they say it’s time to do something,” Al-Falih told Bloomberg. “They want us to do all of the work and they want to take the benefit, but that’s, you know, that’s life.”
Saudi Arabia with its massive reserves is seen as OPEC’s de facto leader.
