OPEC+ Oil Cut Adds to Troubles Faced by Refiners and Traders
- Traders assessing the outlook for China, winter energy demand
- Europe set to replace Middle East supply with African barrels
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The biggest cut to OPEC+ supply since the pandemic has added another element of uncertainty for oil traders weighing the outlook for Chinese demand and a potential energy-supply squeeze during winter.
The cut will likely lead to higher costs for crude imports as the dollar climbs and fuel consumption gains over winter, said Kim Woo Kyung, a spokesperson for South Korean oil refiner SK Innovation Co. There’s also the possibility of demand falling due to a global economic slowdown, she said, highlighting the competing factors the market needs to juggle.