LONDON, Sept 24 (Reuters): Oil prices fell on Tuesday after weak manufacturing data from Europe and Japan focused market attention on a gloomy outlook for demand and as Saudi Arabia could restore oil output faster than anticipated following attacks last week.
Brent crude futures dropped 95 cents to $63.82 a barrel by 1106 GMT, while US West Texas Intermediate futures were at $57.91, down 73 cents.
"Financial data was anything but encouraging yesterday," said Tamas Varga of oil brokerage PVM, pointing to sluggish manufacturing numbers in leading European economies and Japan. Reuters reported on Monday that Saudi Arabia had restored more than 75 per cent of crude output lost after attacks on its oil installations and would return to full volumes by early next week.
But the Wall Street Journal said repairs at the plants could take months longer than anticipated.
"There remains conflicting news coming out of Saudi Arabia, but an increasing number of reports pointing to Saudi Aramco purchasing external products and potentially also crude to meet its term commitments do not give the impression that an imminent return to full capacity is in sight," consultancy JBC Energy said.
State-run oil company Aramco has stepped up purchases of products such as naphtha, gasoline and diesel from Europe and elsewhere.
Still, oil prices remain at comparatively elevated levels for the year in the wake of the Sept. 14 attack on Saudi Arabia's largest oil-processing facility that halved output in the world's top oil exporter. An increase in US oil exports to Asia to replace Saudi crude and a reduction in US imports from Iraq meant crude inventories in the United States could be lower than expected, said Mike Tran, commodity strategist at RBC Capital Markets.
Oil falls due to weak economic data, Saudi output recovery
FE Team | Published: September 24, 2019 21:12:43
Oil falls due to weak economic data, Saudi output recovery
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