New Delhi: Crude oil prices were under pressure on Tuesday as a mixed set of economic data out of the second-largest consumer China offset worries about supply cuts by major producers.

Around 1110 am, the January contract of Brent on the Intercontinental Exchange traded at $84.78 per barrel, down 0.47% from previous close. The December West Texas Intermediate (WTI) contract on the NYMEX was 0.40% at $80.50 a barrel.

China’s exports dropped 6.4% year-on-year in October, while imports rose 3.0% on the year last month. Investors are worried that falling exports emphasise the economic headwinds the country and the world, at large, face.

Imports, however, offer hope Beijing’s stimulus measures may be helping in reviving domestic demand. In September, imports fell 6.2%. 

A rebound in dollar also weighed on the oil prices.

Oil prices would have declined further but for continued conflict in West Asia and Saudi Arabia and Russia’s decision to extend voluntary output cuts.

“Crude oil prices recovered from 3-month lows in the international markets after hefty fall in the last two weeks. Crude oil prices recovered after Saudi Arabia and Russia reaffirmed on Sunday that its voluntary output cuts remain continue until end of this year. Crude oil prices also recovered after decline in the U.S. oil rig counts last week," said Rahul Kalantri, vice president for commodities at Mehta Equities Ltd.

Saudi Arabia has said it will continue with its additional voluntary cut of 1 million barrels per day, while Moscow will maintain its additional voluntary supply cut of 300,000 bpd from its crude oil and petroleum product exports until the end of December.

“We expect crude oil prices remain volatile in today’s session," Kalantri added.

Global oil prices have ticked lower after having traded well above $90 per barrel in September and October. 

The Indian crude basket was priced at $87.23 a barrel on 6 November. So far this month, it has averaged at $87.4 a barrel, lower than the average of $93.54 and $90.08 a barrel in September and October.

The Indian basket of crude oil represents a derived basket comprising of Sour grade (Oman & Dubai average) and Sweet grade (Brent Dated) of crude oil processed in Indian refineries in the ratio of 75.62 : 24.38.

ABOUT THE AUTHOR Rituraj Baruah Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42. Read more from this author