Market

Oil Down, Reverses Earlier Uptick as China Aims to Soften Power Shortage By Investing.com

© Reuters.

By Gina Lee

Investing.com – Oil was down Wednesday morning in Asia, reversing its earlier upward trend. The also indicated that it was searching for ways to curb coal prices that are at record highs, as well as to ensure coal mines operate at full capacity to alleviate a power shortage.

fell 0.58% to $84.59 by 10:12 PM ET (2:12 AM GMT) and were down 0.53% to $82.

Chinese coal prices and other commodity prices slumped as the Asian trading day opened, in turn dragging oil down from its earlier upward trend.

The black liquid hit multi-year highs earlier in the week as a global coal and gas shortage continues, incentivizing a switch to diesel and fuel oil for power generation.

“Ultimately, China’s coal output needs to increase to remedy its energy woes,” Commonwealth Bank commodities analyst Vivek Dhar said in a note.

China’s National Development and Reform Commission (NDRC) discussed government intervention in coal prices, the China Electricity Council said on Tuesday.

The NDRC also said in a separate statement that it would ensure coal mines operate at full capacity and aim to achieve at least 12 million tons per day of output, up more than 1.6 million tons from late September 2021.

Meanwhile, Tuesday’s showed a build of 3.294 million barrels for the week ended Oct. 15. Forecasts prepared by Investing.com predicted a 2.233-million-barrel build, while a build of 5.213 million barrels was recorded during the previous week.

Investors now await , due later in the day.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Most Related Links :
Business News Governmental News Finance News

Source link

Back to top button