RIYADH: Oil prices slid more than 1 percent on Monday after Chinese data showed that demand from the world’s largest crude importer remained lackluster in September as strict COVID-19 policies and fuel export curbs depressed consumption.

Brent crude futures for December settlement slid $1, or 1.1 percent, to $92.50 a barrel by 0609 GMT after rising 2 percent last week. 

US West Texas Intermediate crude for December delivery was at $84.02 a barrel, down $1.03, or 1.2 percent. 

China’s September crude oil import falls

China’s crude oil imports in September were 2 percent below their level a year earlier, data showed on Monday, as independent refiners curbed throughput amid thin margins and lackluster demand.

However, state-run refiners lifted fuel exports to the highest monthly volume since June 2021 to cash in on robust export margins, according to data from the General Administration of Customs that was released a week behind schedule.

The world’s largest crude importer brought in 40.24 million tons of crude oil last month, equivalent to about 9.79 million barrels per day. While that was up from 9.5 million bpd in August, shipments remained below the nearly 10 million bpd imported a year earlier.

Imports for the first three quarters totaled 370.4 million tons, or about 9.9 million bpd, 4.3 percent below the corresponding period last year. This marks the first annual decline for this period since at least 2014.

However, the data showed that exports last month of refined fuel — including diesel, gasoline, aviation fuel and marine fuel oil — soared 36 percent from a year earlier to 5.64 million tons.

Year-to-date exports were down 27.6 percent at 35.45 million tons, as a result of Beijing’s policy adopted in late 2021 to limit fuel exports and excessive refinery processing.

But, in late September Beijing released a large set of fresh fuel export quotas to boost its sagging economy, which could see exports recover further through the first quarter of 2023.

Natural gas imports last month via pipelines and as liquefied natural gas (LNG) also rebounded to 10.15 million tons, the highest since January, the data showed.

However, volumes were 4.4 percent lower than a year earlier, with LNG imports being the drag as companies avoided pricey spot purchases.

Gas imports for the first nine months of the year were down 9.5 percent year-on-year at 81.16 million tons.

South African President welcomes focus on price stabilization of oil

South African President Cyril Ramaphosa has welcomed the decision by Saudi Arabia and other countries in the Organization of Petroleum Exporting Countries to focus on price stabilization in their management of oil production, according to a statement. 

In the statement, the president noted that the decision by OPEC countries could provide relief to South Africa’s pressured economy. 

(With input from Reuters)