By Foo Yun Chee and Supantha Mukherjee

BRUSSELS/STOCKHOLM (Reuters) -Microsoft and Google will not challenge an EU law requiring them to make it easier for users to move between competing services such as social media platforms and internet browsers.

As part of its latest crackdown on Big Tech, the European Union in September picked 22 “gatekeeper” services, run by six of the world’s biggest tech companies, to face new rules .

The Digital Markets Act (DMA) requires these gatekeepers to inter-operate their messaging apps with competitors and allow users to decide which apps they pre-install on their devices.

The DMA will apply to services from Alphabet, Amazon, Apple, Meta, Microsoft and TikTok owner ByteDance.

Those disagreeing with the label and its requirements have until Nov. 16 to take their complaint to the Luxembourg-based General Court, which deals with cases ranging from competition law to trade and the environment.

A Google spokesperson said it will not appeal the decision.

Alphabet’s Google has the highest number of services, including its Android operating system, maps and search, which will face tougher rules under the DMA.

Google has adopted a strategy in recent years of working rather than fighting EU regulators, and it would be hard for the company to win as it is the dominant player, according to sources familiar with the matter.

Companies such as Zalando and Amazon have challenged the Digital Services Act (DSA), seen as a companion legislation to the DMA, which imposes greater responsibilities on tech firms for the content shared on their sites.

Amazon, which had previously said it will continue to work constructively with the European Commission, declined comment.

“We accept our designation as a gatekeeper under the Digital Markets Act and will continue to work with the European Commission to meet the obligations imposed on Windows and LinkedIn under the DMA,” a Microsoft spokesperson said.

Industry sources told Reuters that other companies such as TikTok and Meta could likely file challenges. Meta’s Facebook, Instagram, Marketplace, and WhatsApp qualified as gatekeepers.

Meta and TikTok declined to comment.

TikTok earlier said that it fundamentally disagreed with the gatekeeper designation.

Apple, which Bloomberg News reported on Friday is also likely to challenge its designation, did not respond to requests for comment.

(Reporting by Foo Yun Chee in Brussels and Supantha Mukherjee in Stockholm; Editing by Sharon Singleton and Alexander Smith)

(Reuters) – U.S. stock index futures edged higher on Tuesday as investors awaited a key inflation reading to gauge the Federal Reserve’s monetary policy path.

After enjoying strong gains on Friday, the main stock indexes stalled on Monday as investors waited for consumer prices data to assess if the U.S. central bank was nearly done increasing borrowing costs.

The data, due at 8:30 a.m. ET (1330 GMT), is expected to show a 3.3% rise in headline consumer prices in October from a year earlier, easing from 3.7% in September. Core prices, that exclude volatile energy and food components, is expected to remain steady at 4.1%.

“Further evidence of cooling inflationary pressures may reinforce the argument around the Fed being done with hikes, despite recent hawkish remarks from central bank officials,” Lukman Otunuga, senior market analyst at FXTM wrote in a note.

“However, if inflation prints above forecasts, this could boost speculation around the Fed raising rates in the early part of 2024.”

Traders have priced in an 86% chance the Fed will hold interest rates at 5.25%-5.50% range in December, per CME Group’s Fedwatch tool. Meanwhile, the odds of the first rate cut in June 2024 have grown recently.

That is in contrast with the recent hawkish messages from Fed officials.

Fed Chair Jerome Powell last week left the door open to further policy tightening should progress toward the Fed’s 2% inflation goal stall out.

Fed Vice Chair for Supervision Michael Barr is set to testify before the Senate Banking Committee, while investors will parse comments from Cleveland Fed President Loretta Mester and Chicago Fed chief Austan Goolsbee later in the day.

Focus is also on negotiations by U.S. lawmakers over a funding bill to avert a partial government shutdown beginning on Saturday.

U.S. House Speaker Mike Johnson’s plan to avert a government shutdown faces a key test on Tuesday, as he tries to overcome hardline opposition from his own Republican conference, even as some Democrats signal tentative support for the measure.

At 6:16 a.m. ET, Dow e-minis remained unchanged, S&P 500 e-minis were up 2.25 points, or 0.05%, and Nasdaq 100 e-minis were up 26.5 points, or 0.17%.

Snap Inc shares rose 4.2% premarket following news that Amazon.com will allow Snapchat users in the United States to buy some products listed on the ecommerce company directly from the social media app.

Home Depot gained 0.9% after the U.S. home improvement chain posted a smaller-than-expected decline in quarterly same-store sales.

U.S.-listed shares of China’s Tencent Music Entertainment edged up 0.3% as the company beat estimates for third-quarter revenue, helped by steady growth in paid subscriptions on its music streaming platform.

Fisker slid 13.4% after the electric-vehicle startup slashed its 2023 production forecast as it struggles to ramp up deliveries, and flagged weakness in internal controls over financial reporting.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shinjini Ganguli)

By Victoria Waldersee and Nick Carey

BERLIN/LONDON (Reuters) -After years of accelerating growth, Europe’s electric car sales appear to be entering a go-slow zone as drivers wait for better, cheaper models that are two to three years down the road.

Fully-electric sales in Europe were up 47% in the first nine months of 2023, but instead of celebrating, automakers including Tesla, Volkswagen and Mercedes-Benz sounded a sombre note.

High interest rates and a subdued market are putting customers off, they warned, with Volkswagen’s EV order intake half what it was last year.

Dealers in Germany and Italy as well as research by four global data analysis firms say there is more behind the slower uptake than economic uncertainty, with the consumers unconvinced that EVs meet their safety, range and price needs.

“The main problem is uncertainty,” said Thomas Niedermayer, head of a 45-year-old family-owned Bavarian car dealership.

“Many assume that the technology will improve and would rather wait three years for the next model than buy a vehicle now that will quickly lose value.”

Take Flavia Garcia and Tom Carvell in Edinburgh, Scotland.

Their 15-year-old hand-me-down Toyota Auris, nicknamed Martina, needs replacing. With a petrol and diesel car ban nearing, the couple would consider an EV, but are put off by a lack of charging infrastructure, battery life fears and price.

AutoTrader says new EVs in Britain are still on average 33% more expensive than fossil-fuel models.

And most new models in the pipeline targeting entry-level consumers will not hit the market before 2025 at the earliest – by which time they will be contending with an expanded Chinese line-up from BYD to Nio in Europe.

“You want to do the right thing for the environment, but it feels like you’re setting yourself up for a very expensive investment that will make your life that bit more complicated,” Garcia, a 29-year-old corporate media director, said.

“We’ll probably get a hybrid first”.

FALLING BEHIND

Critics have long warned that a lack of affordable EVs would eventually stall the steep sales growth boosted by early adopters and corporate fleets.

A weaker performance in September, consumer sentiment surveys and bleak commentary from carmakers and dealers indicates that low growth era may have arrived.

U.S. automakers, though further behind on the transition to EVs, are also feeling the pinch. Ford and GM warned recently they were delaying the launch of cheaper EV models and pulling back on spending due to weaker demand and higher costs in the wake of new United Auto Worker contracts.

But the problem is cyclical.

Demand will remain slow for as long as there are no cheaper EVs available, Felipe Munoz of JATO Dynamics said of the slowdown in sales in Europe in September.

“From a regulatory standpoint, they don’t have to push product out right now – they can afford to focus on profitability,” said Alistair Bedwell, head of powertrain forecasting at GlobalData.

“But they need to have an eye on Tesla and the Chinese brands, because they don’t want to get too far behind.”

Intention to buy an EV has stayed constant in Germany over the past year, a poll by consumer research firm The Langston Co showed – meaning that although the number of EVs being sold is rising, the number of people wanting to buy an EV is not.

Growing sales may simply be a sign that carmakers who were struggling to produce EVs because of supply chain bottlenecks can finally meet backed up orders, rather than a sign of rising demand, said The Langston Co’s insights manager Ben DuCharme.

Philip Nothard, insight director at dealer services firm Cox Automotive, said low residual values also put buyers off as companies and many consumers choose new cars based on what they can sell them for a few years down the line.

“We call it the valley of death, which we will be going through in 2024 to 2027: low residual values, high supply, and low demand,” Nothard added.

(Reporting by Victoria Waldersee, Nick Carey; Additional reporting by Giulio Piovaccari in Rome, Paul Lienert in Detroit; Graphics by Sumanta Sen; Editing by Alexander Smith)

By Shariq Khan

BENGALURU (Reuters) – Oil prices rose by more than 1% on Monday after OPEC’s monthly market report eased worries about waning demand and a U.S. probe into suspected violations of Russian oil sanctions raised concerns about potential supply disruptions.

Brent crude futures rose by $1.09, or 1.3%, to settle at $82.52 a barrel, while U.S. West Texas Intermediate (WTI) crude futures also gained $1.09, or 1.4%, to settle at $78.26 a barrel.

In a monthly report, OPEC said oil market fundamentals remained strong and blamed speculators for a drop in prices. OPEC made a slight increase to its 2023 forecast for global oil demand growth and stuck to its relatively high 2024 prediction.

“The OPEC monthly oil market report appeared to push back against demand concerns, referencing overblown negative sentiment around Chinese demand while raising demand growth forecasts for this year and leaving them unchanged for next,” Craig Erlam, senior market analyst at OANDA, said in a note.

Oil prices were also lifted by reports of the U.S. Treasury Department cracking down on Russian oil exports, UBS analyst Giovanni Staunovo said.

Treasury sent notices to ship management companies for information on 100 vessels it suspects of violating Western sanctions on Russian oil, a source who has seen the documents told Reuters.

The U.S. Energy Information Administration (EIA) said last week the country’s crude oil production this year will rise by slightly less than expected and demand will fall. On Monday, the EIA forecast U.S. oil output would decline in December for the second consecutive month. [EIA/RIG]

Weak economic data last week from No. 1 crude importer China fed fears of faltering demand. Chinese refiners asked for less supply for December from Saudi Arabia, the world’s largest exporter.

Still, oil prices may have found a bottom after they slid about 4% last week and recorded their first three-week declining streak since May, said Fawad Razaqzada, an analyst at City Index.

“Given that oil prices have weakened in the last few weeks, Saudi Arabia and Russia will likely continue with their voluntary supply cuts into next year. This should therefore limit the downside potential,” Razaqzada said.

Last week, top oil exporters Saudi Arabia and Russia, part of the group known as OPEC+, confirmed they would continue with additional voluntary oil output cuts until the end of the year as concerns over demand and economic growth continue to drag on crude markets.

The next OPEC+ meeting is scheduled for Nov. 26.

(Reporting by Shariq Khan, Paul Carsten, Yuka Obayashi and Colleen Howe; Editing by David Goodman, Susan Fenton and David Gregorio)

(Reuters) – Boeing said on Monday it will increase Huntsville factory production capacity for sensors that are used to guide Patriot missiles to their targets to meet rising air and missile defense needs worldwide.

The facility with increased production capacity, expected to be operational in early 2027, will enable Boeing to increase annual PAC-3 (Patriot Advanced Capability-3) seeker production by more than 30%, the company said.

The move comes as the United States seeks to replenish its weapon stockpiles following shipments to Ukraine. Ukraine has used Patriot missiles in its effort to repel Russia’s invasion.

Patriot, which stands for Phased Array Tracking Radar for Intercept on Target, is considered one of the most advanced air defense systems in the U.S. arsenal. RTX manufactures radar and ground systems, and Lockheed Martin manufactures the interceptor missiles.

Boeing has been awarded more than $2 billion in contracts for making the sensors over the past two years and has produced PAC-3 seekers as a subcontractor to Lockheed Martin for more than 20 years.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shounak Dasgupta)

By Paritosh Bansal

(Reuters) -The cyber hack of Industrial and Commercial Bank of China’s U.S. broker-dealer was so extensive on Wednesday, even the corporate email stopped working and forced employees to switch to Google mail, according to two people familiar with the situation.

The blackout left the brokerage temporarily owing BNY Mellon $9 billion, an amount many times larger than its net capital, a measure of resources at hand to promptly satisfy claims.

Those details and what happened next, some of which are reported here for the first time, show how the ransomware attack pushed the firm owned by China’s largest bank close to the brink. And they serve as a wakeup call for the financial sector and raise some concerns about the resilience of the $26 trillion Treasury market.

ICBC’s New York-based unit, called ICBC Financial Services, got a cash injection from its Chinese parent to help pay back BNY, and it manually processed trades with the custody bank’s help, Reuters reported on Friday.

ICBC told market participants on an industry call on Friday afternoon that it was working with a cybersecurity firm, called MoxFive, to set up secure systems that would allow it to resume normal business on Wall Street, according to the sources. But ICBC expected that process to take at least until Monday, they said.

In the interim, the firm had asked its clients to temporarily suspend business and clear trades elsewhere, the sources said. Other market participants, meanwhile, looked through their own books to see whether they had any exposure and sought to reroute trades, one of the sources said.

ICBC Financial Services could not be reached for comment. ICBC did not respond to a request for comment.

On a notice on its website, the brokerage said it has been “progressing its recovery efforts with the support of its professional team of information security experts.” It said it had cleared Treasury trades executed on Wednesday and repo financing trades done on Thursday.

Moxfive executives did not respond to requests for comment.

The ransomware attack, claimed by cybercrime gang Lockbit, comes at a time of heightened worries about the resiliency of the Treasury market, which is essential to the plumbing of global finance. After upheavals there – most recently during the pandemic in March 2020 – threatened financial stability, U.S. authorities launched a broad review of its functioning.

While market participants and officials have said the impact of the ICBC hack on Treasury market functioning was limited, the full extent of it is not yet understood. There is some debate, for example, about whether it had affected a major auction of Treasury bonds on Thursday.

Nevertheless, market participants said the attack is likely to add a new aspect to the regulatory review, as it brings cyber threats into sharper focus. It could also boost a Securities and Exchange Commission’s push to have more Treasury trades go through central clearing, where a third-party acts as a seller to every buyer, and buyer to every seller.

Darrell Duffie, a Stanford finance professor who has studied the market in depth and consults with regulators, said other firms in ICBC’s situation might not have enough capital readily available to meet a large shortfall and default.

“Any default that could follow an event like this, if not centrally cleared, could propagate into a chain reaction of default events,” Duffie said. “This hack makes even more evident the important financial stability benefits of broader central clearing.”

The hack is likely to become a key topic of conversation at a major Treasury market conference on Nov. 16.

MID-SIZE BROKER

ICBC Financial Services is not huge by Wall Street’s standards. The company had about $24.5 billion in assets as of June 30, with $480.7 million of net capital, according to financial information posted on its website. It also had credit lines from affiliates of $450 million as well as the ability to borrow overnight funds from an affiliate.

It mainly offers settlement and financing services for fixed-income securities, such as repurchase agreement (repo), where assets such as Treasuries are used as collateral to raise short-term cash.

It told market participants on Friday’s call that its clients include four independent brokers and half a dozen algorithmic traders, according to the sources. Reuters could not learn the identity of its clients.

One of the sources described the business as mid-sized, explaining that “the biggest players in Treasuries are not clearing at a firm like that.”

Even so, the attack that paralyzed its systems threw a wrench in the market’s gears when word of the hack spread through Wall Street. One of the sources said some market participants scrambled to sort out whether they had any exposure and rerouted their trades to other firms.

$9 BLN OVERDRAFT

When ICBC’s trades got stuck, it became BNY Mellon’s issue, too, since it is the sole settlement agent for Treasury securities. The bank played a crucial role in helping sort through the mess, deploying a manual process to clear trades one by one, the market participants said.

ICBC’s inability to access its systems meant securities from the Chinese firm’s repo trades were getting delivered to BNY for settlement, but no cash was coming in from the broker-dealer, one of the sources said.

That effectively meant BNY was loaning ICBC the cash, secured by Treasuries, according to the source. That’s when ICBC’s parent injected capital into the unit, allowing BNY to be paid, the source said.

ICBC told market participants on the call, which was organized by the industry group SIFMA, that the transfer had been more than what they expected was needed for current trading volumes, the source said.

SIFMA declined to comment.

Once the firm gets its new system up and running, others on the Street are likely to do their own review to make sure it is safe, which might add time for the business to return to normal, the sources said.

ICBC told market participants Friday that they were also hoping to have a secondary email system set up soon.

(Reporting by Paritosh Bansal; editing by Edward Tobin)

By Michael S. Derby

NEW YORK (Reuters) -The expected path for inflation softened on balance in October amid rising expectations for future gasoline price increases and a largely stable outlook for employment and personal finances, the Federal Reserve Bank of New York reported on Monday.

Respondents to the bank’s latest Survey of Consumer Expectations project inflation a year from now will stand at 3.6% from September’s 3.7%, with inflation three years from now seen at 3%, the same level as the prior month, while five years from now inflation is forecast to stand at 2.7%, from September’s 2.8%.

The New York Fed found that last month the expected rise in home prices remained at a historically tepid 3%, while survey respondents marked up the projected price of future gasoline price rises to 5%, from September’s 4.8%.

The survey found little movement in how consumers view the outlook for the job market, with fewer people expecting higher unemployment next year and a small gain in those who expect to lose their jobs over the next 12 months. The expected path for spending held steady in October at 5.3%, a level well under the 7% the survey found a year ago, while the projected rise in household income was at 3.1% in October, from 3% in September.

The report also said there’s been an improvement in how households viewed their current personal financial situation, with a “mixed” view on how things will be a year from now.

The New York Fed’s report is most closely watched for its readings on inflation expectations, and it arrives at a time when some data has been spitting out a conflicted outlook for price pressures at a critical point for central bank monetary policy.

The relative stability of New York Fed expectations data contrasts with that seen in the University of Michigan Consumer Sentiment Survey. It found in November a rise in year-ahead expected inflation to 4.4% from 4.2% in October, with five-year expected inflation up to 3.2%, from October’s 3%. Those numbers followed large increases in the University of Michigan October survey, which led the survey authors to say the gains are “no fluke.”

The Fed closely watches inflation expectations data because officials believe the expected path of price pressures exert a strong influence on where inflation stands now. Over the last year and a half the Fed has aggressively raised rates in a bid to cool high inflation. It left its rate target steady at its policy meeting at the start of the month as inflation pressures have ebbed. But it kept alive the prospect of more action should inflation not fall further on the path back to 2%.

Fed Chair Jerome Powell said in his press conference after the Federal Open Market Committee meeting that expectations remain “well anchored,” adding “it’s just clear that inflation expectations are in a good place” and “there’s no real crack in that armor.”

In comments on Friday, Powell acknowledged “inflation has given us a few head fakes” and he reiterated again the Fed will hike rates again if deemed necessary to control inflation.

LPL Financial Chief Economist Jeffrey Roach said, “investors should focus on the more encouraging and more robust survey out of the New York Fed,” which he said draws on a bigger sample base and does more to fully capture consumer behavior than the Michigan survey.

By and large, economists are still expecting inflation to move lower albeit at a slow pace. The Philadelphia Fed said on Monday in its latest quarterly Survey of Professional Forecasters that economists expect inflation measured by the personal consumption expenditures price index, the central bank’s preferred price pressure gauge, will still be over 2% through 2024, and stand at an annualized 2.3% by the final quarter of that year.

Another major test for inflation readings looms on Tuesday. The government will report on the October consumer price index, Stripped of food and energy, the core CPI is seen up by 4.1% in October, matching September’s reading, while overall price pressures are seen moderating.

(Reporting by Michael S. Derby; Editing by Andrea Ricci)

COPENHAGEN (Reuters) -Seismic activity in southwestern Iceland decreased in size and intensity on Monday, but the risk of a volcanic eruption remained significant, authorities said, after earthquakes and evidence of magma spreading underground in recent weeks.

Almost 4,000 people were evacuated over the weekend as authorities feared that molten rock would rise to the surface of the earth and potentially hit a coastal town and a geothermal power station.

Located between the Eurasian and the North American tectonic plates, among the largest on the planet, Iceland is a seismic and volcanic hot spot as the two plates move in opposite directions.

The Icelandic Meteorological Office said on Monday there was a “significant likelihood” of an eruption in coming days on or just off the Reykjanes peninsula near the capital Reykjavik, despite the size and intensity of earthquakes decreasing.

“We believe that this intrusion is literally hovering, sitting in equilibrium now just below the earth’s surface,” said Matthew James Roberts, director of the service and research division at the meteorological office.

“We have this tremendous uncertainty now. Will there be an eruption and if so, what sort of damage will occur?” he said.

Thorvaldur Thordarson, professor in vulcanology at the University of Iceland, said most recent data indicated a smaller risk of an eruption in the area around the town of Grindavik.

Inhabitants of Grindavik described being whisked from their homes in the early hours of Saturday as the ground shook, roads cracked and buildings suffered structural damage.

Hans Vera, a Belgian-born 56-year-old who has lived in Iceland since 1999, said there had been a constant shaking of his family’s house.

“You would never be steady, it was always shaking, so there was no way to get sleep,” said Vera, who is now staying at his sister-in-law’s home in a Reykjavik suburb.

“It’s not only the people in Grindavik who are shocked about this situation it’s the whole of Iceland.”

Almost all of the town’s 3,800 inhabitants had been able to find accommodation with family members or friends, and only between 50 and 70 people were staying at evacuation centres, a rescue official said.

Some evacuees were briefly allowed back into the town on Sunday to collect belongings such as documents, medicines or pets, but were not allowed to drive themselves.

“You have to park your car five kilometres from town and there’s 20 cars, huge cars from the rescue team, 20 policemen, all blinking lights, it’s just unreal, it’s like a war zone or something, it’s really strange,” Vera said.

The Reykjanes peninsula is a volcanic and seismic hot spot southwest of the capital. In March 2021, lava fountains erupted spectacularly from a fissure in the ground measuring between 500-750 metres long in the region’s Fagradalsfjall volcanic system.

Volcanic activity in the area continued for six months that year, prompting thousands of Icelanders and tourists to visit the scene. In August 2022, a three-week eruption happened in the same area, followed by another in July of this year.

(Reporting by Louise Rasmussen, Tom Little, Jacob Gronholt-Pedersen and Johannes Birkebaek in Copenhagen, Ilze Filks in Stockholm and Essi Lehto in HelsinkiEditing by Alex Richardson)

By Suzanne McGee

(Reuters) – Fidelity launched a group of six new exchange-traded funds (ETFs) Monday and announced sharp reductions on management fees on nearly a third of its total ETF lineup, kicking off what analysts expect to be another strong week for ETF debuts.

So far this year, asset managers have launched 419 ETFs, according to Morningstar Direct, taking 2023 a step closer toward breaking the 2021 record of 475 new ETFs.

This week is expected to feature at least a dozen new products.

Among them, Ark Invest and 21Shares AG will roll out a group of five actively-managed ETFs tied to bitcoin and ethereum futures as well as blockchain technology on Tuesday and Wednesday. The move will boost Ark’s lineup from eight ETFs to a total of 15.

Rolling out multiple ETFs in a cluster has become an increasingly common strategy, said John Hooson, managing director of global ETF product at Brown Brothers Harriman.

“Sometimes, as with ARK, it’s a group of products targeting different slices of the same strategy or market” segment, he said.

Fidelity’s ETF conversions include funds focused on large-cap growth, value and core portfolios, as well as mid-cap small-cap, and international stocks.

The Fidelity products offer fees of 18 basis points to 28 basis points, compared with an average fee of around 63 basis points for actively managed ETFs, according to Bryan Armour, mutual fund analyst at Morningstar.

“These are very, very substantial reductions, and the new fees are very low,” said Armour.

(Reporting by Suzanne McGee; Editing by Ira Iosebashvili and Deepa Babington)

By Shariq Khan

BENGALURU (Reuters) -Oil prices rose by more than 1% on Monday after OPEC’s monthly market report eased market concerns about waning demand in the United States and China.

Brent crude futures were up $1.25, or 1.5%, at $82.68 a barrel by 1158 a.m. ET (1658 GMT), while U.S. West Texas Intermediate (WTI) crude futures were up $1.24, or 1.6%, at $78.41.

In a monthly report on Monday, OPEC said that oil market fundamentals remained strong and blamed speculators for a drop in prices. OPEC made a slight increase to its 2023 forecast for global oil demand growth and stuck to its relatively high 2024 prediction.

“The OPEC monthly oil market report appeared to push back against demand concerns, referencing overblown negative sentiment around Chinese demand while raising demand growth forecasts for this year and leaving them unchanged for next,” Craig Erlam, senior market analyst at OANDA, said in a note.

Investors had been worried after the U.S. Energy Information Administration (EIA) said last week that the country’s crude oil production this year will rise by slightly less than previously expected and that demand will fall.

Markets were also wary of potential U.S. monetary policy tightening after Federal Reserve Chair Jerome Powell said last week that the central bank could raise interest rates again if inflation is not curbed.

Weak economic data last week from China, the world’s biggest crude oil importer, also raised fears of faltering demand. Chinese refiners asked for less supply for December from Saudi Arabia, the world’s largest exporter.

Still, oil prices may have found a bottom after they slid about 4% last week and recorded their first three-week declining streak since May, said Fawad Razaqzada, an analyst at City Index.

“Given that oil prices have weakened in the last few weeks, Saudi Arabia and Russia will likely continue with their voluntary supply cuts into next year. This should therefore limit the downside potential,” Razaqzada said.

Last week, top oil exporters Saudi Arabia and Russia, part of the group known as OPEC+, confirmed they would continue with additional voluntary oil output cuts until the end of the year as concerns over demand and economic growth continue to drag on crude markets.

The next OPEC+ meeting is scheduled for Nov. 26.

(Reporting by Shariq Khan, Paul Carsten, Yuka Obayashi and Colleen HoweEditing by David Goodman and Susan Fenton)