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Brent crude futures were down $1.65, or 1.94%, to $83.53 a
barrel as of 0920 GMT while U.S. West Texas Intermediate crude
was at $79.21 a barrel, down $1.61, or 1.99%. Both hit their
lowest levels since late August.
The premium on front-month loading Brent contracts over ones
loading in six months' time was also at a 2-1/2-month low,
indicating market participants are less concerned with current
supply deficits.
While China's crude oil imports in October showed robust growth
both year on year and month on month, its total exports
contracted at a quicker pace than expected.
Expectations of crude run reductions by China-based refiners
between November and December could also limit oil demand and
exacerbate price declines.
World shares, which often trade in tandem with oil, lost steam
on Tuesday as investor enthusiasm about a peak in global
interest rates faded. In addition, the U.S. dollar has ticked up
from recent lows, making oil more expensive for holders of other
currencies. [MKTS/GLOB]
On the supply side, markets are waiting to see if Saudi Arabia
and Russia are ready to rein in production voluntarily beyond
the end of the year in addition to a broader deal among the
OPEC+ producer group.
OPEC+ is unlikely to be in a hurry to undo oil output cuts when
its joint ministerial monitoring committee meets on Nov. 26,
said Kelvin Wong, senior market analyst at OANDA.
(Additional reporting by Trixie Yap in Singapore and Yuka
Obayashi in Tokyo; editing by Jason Neely)
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