Brent Crude eases, trades at $84.3 per barrel

Brent crude futures eased from recent highs and settled around $84.3 a barrel on Tuesday, pressured by prospects of lower industrial demand for energy products.

Traders weighed an unexpected 1.3% drop in US industrial output, largely impacted by supply-chain constraints, Hurricane Ida and a global semiconductor chip shortage, resulting in reduced automobile production.

Additionally, growth in top oil importer China was seen slowing more than anticipated, with Q3 GDP growing 4.9% from a year earlier, amid significant headwinds from power shortages, virus outbreaks and supply bottlenecks.

Losses were, however, limited as tight supplies remained and as European and Asian countries continued to face shortages of coal and natural gas.

Brent Crude oil is a major benchmark price for purchases of oil worldwide. While Brent Crude oil is sourced from the North Sea the oil production coming from Europe, Africa and the Middle East flowing West tends to be priced relative to this oil.

Source: Trading Economics