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15/07/24
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Crude Prices Steady on Weighing Chinese Demand Concerns
On Monday, crude prices were steady as support from ongoing tensions in the Middle East and OPEC+ supply restraint were offset by concerns about demand in top importer China.
Brent futures were 3 cents higher at $85.06 per barrel, while U.S. West Texas Intermediate crude dropped 8 cents, or 0.1%, to $82.13 per barrel.
In the second quarter, the Chinese economy grew much slower than anticipated as job insecurity and an extended property downturn knocked the steam out of a fragile recovery, keeping alive expectations Beijing will have to implement more stimulus.
In June, China’s refinery output dropped 3.7% from the prior year for the third month due to planned maintenance, while lackluster fuel and lower processing margins demand led to independent plants cutting output.
The market in the U.S. focused on the assassination attempt on former President Donald Trump, which some believe could bolster his re-election chances, as they waited for comments by Federal Reserve Chair Jerome Powell for clues of when the Fed may begin cutting interest rates.
According to CME’s FedWatch Tool, markets are now pricing in a 94.4% probability of an interest rate cut in the U.S. of at least 0.25% in September, after last week’s data showed June consumer prices dropped for the first time in 4 years.
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