NEW DELHI :
With China's economic outlook remaining weak, crude oil rates fell by over 2% today. Oil is now headed for its worst quarter since late last year as fears over the global economy and fuel demand overshadowed this month’s unprecedented attack on Saudi Arabia’s energy facilities.
Brent crude oil futures were trading at $60.30 per barrel, down 2.6%. On the Multi Commodity Exchange in India, crude for delivery in October traded at ₹3,916, down ₹18 or 0.46% in late afternoon.
After being stable for the last three days in India, petrol and diesel rates started to increase today once again -- by 7-8 paise per litre.
If September month is taken into account, Brent is set to rise 2.1%, its first monthly gain since June, with prices lifted by an unprecedented attack on Saudi's oil facilities on Sept. 14 that reduced its production by half. WTI is set to rise 1.4% this month.
The oil market has also been driven by the prolonged clash between Washington and Beijing over trade, and the knock-on effects on economic growth. Their dispute has already almost halved oil consumption growth, Citigroup Inc. said earlier this month.
Saudi Arabia's warning:
World's top oil exporter Saudi Arabia has warned that a war with Iran would make oil prices jump to "unimaginably high numbers" that we haven’t seen in our lifetimes.
This came a day after Yemen's Houthi movement said it had carried out a major attack near the border with the southern Saudi region of Najran, though there was no immediate confirmation from Saudi authorities.
In the meantime, Saudi Arabia is said to have restored capacity to 11.3 million barrels per day after drone attacks last fortnight wiped off about 5% of the world's oil supply.