On Tuesday (September 7), international oil prices strengthened again, and some investors bought on dips after falling in the previous day. Prior to this, Saudi Arabia's sharp cuts in Asian crude oil contract prices increased concerns about slowing demand, which adversely affected market sentiment.

Saudi Aramco informed customers that it will cut the October official sales price (OSP) of all crude oil grades sold to Asia by at least $1 per barrel. The sharp price cuts this time show that consumption in the world's largest import region is still tepid.

The lockdown measures implemented across Asia to combat the mutated strain of the new crown virus, Delta, cast a shadow over the economic outlook. The market must also respond to OPEC+'s decision to increase production by 400,000 barrels per day from August to December.

Tetsu Emori, CEO of Emori Fund Management, said: “As investors adjust their positions, ICE Brent has rebounded, but as the epidemic heats up, demand in Asia and the United States is slow, making market confidence still weak. WTI will rise to 70 per barrel. Above the dollar, some new positive news is needed, such as signs of a decline in the infection rate or rising demand for jet fuel,"

However, because of concerns that US supplies will still be restricted after Hurricane Ida, oil prices have been supported. A US regulator said on Monday (September 6) that more than 80% of oil production in the Gulf of Mexico is still closed.

Customs data on Tuesday showed that China’s daily crude oil imports in August increased by 8% from the previous month, as refiners resumed purchasing after issuing new import quotas. According to the General Administration of Customs, China imported 44.53 million tons of crude oil in August, equivalent to 10.49 million barrels per day. In the first eight months of 2021, crude oil imports reached 346.36 million tons, or 10.4 million barrels per day, a year-on-year decrease of 5.7%. China is the world's largest crude oil importer.

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