Oil futures remained on its level after a decline in Chinese oil refineries

Oil drops

The price of oil edged higher amidst early trading session in Asia on Tuesday. The decline in China’s refining runs and a robust U.S. dollar also influenced oil futures.

According to official figures that were released on the previous day, oil refineries in China that were operated last month have touched their lowest level since September last year. Oil giants that are handled by the state have faced off independents in the middle of a petrol price war, which means the decline is an attempt to ease overflowing stockpiles.

Some analyst said the plunging of refining runs was faster that what they forecasted and this worsens the concerns that refined fuel product glut could undermine the demand of oil in China.

Looking on oil futures, U.S. West Texas Intermediate (WTI) crude prices was 0.13 percent higher or 6 cents to finish at $47.65 per barrel and international benchmark for oil Brent crude prices rose about 0.12 percent or 6 cents to end at $50.79 per barrel. The volatile trading session on the previous day made the price of oil slip as low as 2.5 percent.

On the session last Monday, Brent crude reached the summit of their 100-day moving average. The on-going attempts by the Organization of the Petroleum Exporting Countries (OPEC) and other members to curb production have supported Brent pass a $50 per barrel handle.

Futures have also been supported by a released report suggesting that the top oilfield in Libya reduced production more than 30 percent on the back of security concerns.


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