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30/07/24
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Crude Prices Slip 1% To 7-Week Low on Weighing China Concerns
On Tuesday, crude prices slipped about 1% to a 7-week low on concerns about weaker Chinese demand, a stronger U.S. dollar, and worries OPEC+ may in the future boost supplies.
Brent futures for delivery in September dropped $1.01, or 1.3%, to $78.77 per barrel, and U.S. West Texas Intermediate crude dropped 86 cents, or 1.1%, to $74.95 per barrel.
That puts both benchmarks on target for their lowest close since Jun. 5 while both were also in technically oversold territory for the second straight day.
U.S. diesel and gasoline futures were also trading at the lowest levels since early in Jun.
Commodity prices have been weighed down by disappointing Chinese economic news, the world’s biggest crude importer. According to a Reuters poll manufacturing activity in China in July likely shrunk for the third straight month.
Consultancy Rystad Energy’s Claudio Galimberti said weakening global demand growth, the unresolved Chinese economic outlook and elevated global oil inventories were still weighing on prices.
Although Chinese leaders promised to increase support for the economy, expectations on the width of those measures have been limited as the Third Plenum policy meeting generally only reiterated existing economic policy goals.
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