On Monday, crude prices eased as global benchmark Brent held below $80 per barrel, due to supply risks in the Middle East offsetting concerns over economic concerns about top oil importer China dampening global demand sentiment.
Last week’s Chinese data showed the country’s economy in July lost steam, with new home prices dropping at the fastest rate in nine years. Last month, Chinese refineries reduced crude processing rates sharply due to tepid fuel demand.
Brent crude futures fell 52 cents to $79.16 per barrel. U.S. West Texas Intermediate crude (WTI) futures dropped 50 cents to $76.15 per barrel.
On Friday, both crude benchmarks dropped nearly 2% as investors trimmed their demand growth expectations for China but closed the week generally unchanged after U.S. data indicated that despite robust retail spending, inflation was easing.
NS Trading’s president, Hiroyuki Kikukawa, said persistent concerns about slow Chinese demand in China resulted in a sell-off, and added that the end of peak driving season in the US was another factor that weighed on prices.
He added that supply risks from Middle Eastern tensions and escalation of the Ukraine-Russian war were however underpinning the market.
On Sunday, U.S. Secretary of State Antony Blinken arrived in Israel on another Middle Eastern tour to push for a Gaza ceasefire.
