RIYADH: Oil prices fell on Tuesday as recession concerns and worsening COVID-19 outbreaks in China sparked fears of lower fuel demand, outweighing supply worries.
Brent crude fell 31 cents, or 0.3 percent, to $97.61 a barrel by 0434 GMT, while US West Texas Intermediate crude fell 36 cents, or 0.4 percent, to $91.43 a barrel.
Both benchmarks hit their highest since August on Monday amid reports that leaders in China, the world’s top crude importer, were weighing an exit from the country’s strict COVID-19 restrictions.
Russia’s Sberbank sues Glencore for $116 million over oil supplies
Russia’s largest lender, Sberbank, is suing global commodities trader Glencore for around EUR?117 million ($116 million) over unpaid oil supplies, the bank said on Monday and court records from the database of Moscow’s Arbitration Court showed.
The court’s database showed Sberbank was seeking to recover debt and penalties from Glencore Energy UK Ltd. over two agreements, worth roughly EUR?58 million each.
One related to oil blend supplies to the border of Ukraine and Hungary in March, and the other to supplies to the border of Ukraine and Slovakia in the same month.
In an emailed statement to Reuters, Sberbank confirmed it had filed the lawsuit against Glencore.
“This is a forced measure, since the bank’s repeated attempts to settle the matter out of court have been unsuccessful,” the bank’s press service said.
Algeria’s Sonatrach, Eni start production at HDLE/HDLS oil field
Sonatrach and Italy’s Eni have started production at the HDLE/HDLS oil field in the Berkine Basin at 10,000 barrels of oil equivalent per day, the Algerian company said in a statement on Monday.
The oil field is expected to increase output to 17,000 barrels of oil equivalent per day with new drilling in 2023, the statement added.
India’s October fuel demand rises 3.4 percent year-on-year
India’s fuel consumption, a proxy for oil demand, rose 3.4 percent year-on-year in October to 18.37 million tons, data from the Petroleum Planning and Analysis Cell of the oil ministry showed on Monday.
Sales of gasoline, or petrol, were 8.8 percent at 2.99 million tons. Cooking gas or liquefied petroleum gas sales decreased 3.3 percent to 2.40 million tons, while naphtha sales fell 24 percent to 0.96 million tons.
Sales of bitumen, used for making roads, were 11.5 percent lower, while fuel oil use edged up 0.9 percent in October.
(With input from Reuters)