Due to weak demand from China oil producers are reducing prices. Credit: brewbooks.

Oil prices have edged down amid declining factory output in China and Japan, as well as a record rise in US crude output.

International Brent crude futures decreased 0.5% at $66.04 a barrel, while the US West Texas Intermediate (WTI) crude oil futures fell 0.3% at $56.78 a barrel, Reuters reported.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Crude oil production in the US has increased by more than two million barrels per day (Mbpd) over the last year to 12.1Mbpd, dragging down oil prices.

Official data revealed that China’s factory output weakened this month due to a reduction in export orders at the fastest pace since the global financial crisis ten years ago.

“Further evidence of a slowdown in China hit risk sentiment.”

London Capital Group research head Jasper Lawler told the news agency: “Further evidence of a slowdown in China hit risk sentiment.”

Oil producers are reducing prices due to weak demand from China.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Japan’s factory output also posted the biggest decline last month, as China’s slowdown affects the entire region.

A two-day summit between US President Donald Trump and North Korean leader Kim Jong Un in Vietnam ended with no agreement, due to which financial markets came under pressure.

Trump and Kim Jong-un could not reach an agreement on denuclearising North Korea.

However, supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC), together with some non-affiliated producers such as Russia, offered some support to oil prices.

Due to these reductions, commercial crude inventories in the US declined 8.6 million barrels in the week ending 22 February to 445.87 million barrels.