Crude oil prices fell again on Monday amid expectations of future purchases from China, the main importer.
Oil prices fell on Monday as concerns about demand from top importer, Chinacountered support from OPEC+ supply restrictions and continued tension in the Middle East.
The futures of the Brent fell 18 cents, or 0.21%, to $84.85 a barrel, while U.S. crude prices fell 18 cents, or 0.21%, to $84.85 a barrel. West Texas Intermediate (WTI) fell 30 cents, or 0.36%, to $81.91 a barrel.
“Chinese data, such as refinery operations and crude imports, are not encouraging,” said Giovanni Staunovo, an analyst at UBS. “But demand growth elsewhere remains healthy.”
Meanwhile, crude fell last week after four weeks of gains as hopes for strong summer demand in the United States were offset by concerns about demand in China.
The incidence of the East
Chinese data on Monday added to that concern. The world’s second-largest economy grew 4.7% in the April-June quarter, official figures showed, the slowest pace of growth since the first quarter of 2023. On Friday, separate figures showed that Chinese imports crude oil prices fell 2.3% in the first half of this year.
However, according to analysts, the volatile situation in middle East It remains a geopolitical premium for oil, although large spare capacity in Saudi Arabia and other OPEC members has limited price support.
The oil market is also supported by supply cuts from the producer group OPEC+. Iraq’s oil ministry said over the weekend it would make up for excess production from early 2024. “While fundamentals remain supportive, there are growing concerns about demand, much of it coming from China,” said ING analysts led by Warren Patterson.
Source: Ambito
