Asian time crude oil futures have fallen back. It is on sale after the Chinese government has announced that it is considering ways to curb the soaring coal prices and has announced that it will fully operate the coal mine to solve the power shortage.
Early fall in China’s coal and other commodity prices pushed oil prices down. Crude oil prices hit a few-year high this week against the backdrop of tight global coal and gas supply and demand.
US WTI crude oil futures are down $ 0.30 (0.40%) to $ 82.66 a barrel.
North Sea Brent futures are down $ 0.43 (0.5%) to $ 84.65.
The Chugoku Electric Power Company Association (Chubu Electric Power Co., Inc.) announced on the late 19th that the National Development and Reform Commission (NDRC) of China discussed intervention in the coal market at a major meeting of coal producers.
Apart from this, the NDRC has announced that it will ensure full operation of the coal mine and aim to secure production of at least 12 million tons per day. It will increase by 1.6 million tons from the end of September.
“In the end, we need to increase coal production to solve China’s energy problems,” said Vibeck Dahl, a commodity analyst at the Commonwealth Bank of Australia.
According to market sources, weekly statistics from the American Petroleum Institute (API) have put pressure on the market as crude oil inventories increased by 3.3 million barrels from the previous week.
Joseph Gutierrez holds Master’s degree in Business Administration. As an avid day trader, he is a master of technical analysis and writes tirelessly on how stocks are trading. Joseph has extensive knowledge in technical analysis & news writing. He delivers news reports regarding Market category.