[[{“value”:”
Weak Chinese demand indicators continued to drag oil prices down on Monday, with the U.S. benchmark poised to lose nearly 3% and Brent crude not far behind.
At 2:46 p.m. ET on Monday, West Texas Intermediate (WTI) was trading down 2.75% at $74.54, while Brent crude was trading down 2.32% at $77.83.
Gaza ceasefire talks underway on Monday and billed as “probably the best, maybe the last opportunity” to achieve a ceasefire deal were also thought to be putting downward pressure on oil prices.
However, China demand appears to be the main driver, with on-and-off Gaza ceasefire talks typically resulting in very brief and shifting sentiments.
China economic data, released last week, has now been more fully digested by the markets. Most concerning is home prices that are falling faster than they have at any point in nine years and sharp cuts in July refinery processing rates. This latter is due specifically to weak demand for fuel in China.
The sentiment over the past few days seems to be one of recognition that the Chinese economy will not be recovering as swiftly as was anticipated.
“We currently see long-term trends in global oil demand tilting lower with a much softer than expected Chinese economic recovery providing primary impetus in this regard,” Jim Ritterbusch of Ritterbusch and Associates told Reuters on Monday.
Likewise, Reuters quoted NS Trading’s Hiroyuki Kikukawa as saying that “persistent concerns about slow demand in China led to a sell-off.”
In the meantime, markets will be waiting for any further indications that the Fed may still proceed with an interest rate cut in September, which in turn would boost economic activity and likely lead to an increase in oil prices.
By Charles Kennedy for Oilprice.com
Take the Survey at https://survey.energynewsbeat.com/
Crude Oil, LNG, Jet Fuel price quote
ENB Top News
ENB
Energy Dashboard
ENB Podcast
ENB Substack
The post WTI Sheds Nearly 3% as China Demand Dulls appeared first on Energy News Beat.
“}]]