Slow growth in the Asian giant and falling imports are impacting crude oil prices.
He Petroleum fell 1% on Tuesday near its lowest levels since early June, as concerns about demand in China was not fully offset by the government’s promise to adopt measures to shore up the economy, while the OPEC+ It appeared that it would continue with its plans to increase supply.
The prices of the Brent fell $1.15, or 1.4%, to $78.63 a barrel, while U.S. crude fell $1.15, or 1.4%, to $78.63 a barrel West Texas Intermediate (WTI) fell $1.08, or 1.4%, to $74.73. These were the lowest closes for both benchmarks since June 5 and kept both contracts technically oversold for a second consecutive day.
American futures of the gasoil and the gasoline They also closed at their lowest levels since early June.
The complex international situation
* Manufacturing activity in China, The world’s largest crude importer probably contracted for a third straight month in July, according to a Reuters poll.
Chinese leaders have pledged to step up support for the economy, but investors expect such measures to be limited as the Third Plenum meeting largely reiterated existing goals.
In Lebanon, An Israeli airstrike hit a senior commander Hezbollah in the southern suburbs of Beirut, in what the Israeli military said was retaliation for a cross-border rocket attack over the weekend that killed 12 children and teenagers.
Some analysts have said that the restrained response of Israel could indicate that an agreement is close to being reached Loop. A ceasefire agreement with Hamas “has the potential to (eliminate) between $4 and $7 (per barrel) of risk premium from the market,” he said. Bob Yawger, Director of Energy Futures Mizuho, in a note.
On Thursday, top OPEC+ ministers, the Organization of Petroleum Exporting Countries (OPEC) and allies such as Russia, will meet to review the market, including a plan to begin undoing some production cuts. No changes are expected at this time.
At the same time, USA is studying new sanctions against Venezuela, OPEC member, following the controversial results of the presidential elections in the South American country.
Source: Ambito
