Inventory rise in US, fears of China industrial cutbacks, pull oil back to $70 a barrel
Crude oil prices fell back to around $70 a barrel during the week ended 27 August as stocks rose in the US and China mulled cutting back its industrial production.
In the US, September West Texas Intermediate (WTI) was trading at about $70.20 a barrel, down $1.80 from a week before.
In Europe, September Brent was trading at $70.80 a barrel, down $3 a barrel from a week before.
The international oil cartel’s average price for its 12 member states’ oil was $70.44 a barrel on 26 August meanwhile, down $0.70 a barrel from seven days earlier.
Chinasaid that it was considering cutting back production in the key steel and cement industries on 27 August, as it is wary of over production.
News that oil stocks in the US, the world’s largest consumer, rose by 200,000 barrels to 343.8 million barrels in the week ended 21 August, also pushed prices down.
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