21.10.202110:24:00UTC+00Oil Prices Fall In Choppy Trade

Oil hit a three-year high above $86 a barrel on Thursday before reversing gains on fears that Evergrande's debt troubles could hit China's broader economic recovery.

Benchmark Brent crude futures were down 93 cents, or 1.1 percent, at $84.89 a barrel, after having hit as high as $86.10, the highest since October 2018, earlier in the day.

U.S. West Texas Intermediate crude futures were down 64 cents, or 0.8 percent, at $82.78.

China Evergrande reportedly won a more than three month extension to the maturity of a $260 million bond, a day after a deal to sell a $2.6 billion stake in its property services unit failed.

Statements from other property developers also exacerbated investor concern of contagion.

Chinese Estates Holdings said it would book a loss of $29m in its current fiscal year from the sale of bonds issued by property developer Kaisa Group.

Modern Land has withdrawn its plan seeking permission from its debtholders to allow the Chinese property developer to delay repaying a $250 million bond.

Oil also came under pressure from a drop in coal and natural gas prices after China flagged it might intervene to tame record high coal prices and that it would ensure coal mines operate at full capacity.

In another development, Kuwait has begun to increase its crude production in accordance with an agreement reached by OPEC+, state news agency KUNA quoted Oil Minister Mohammad al-Fares as saying.

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