Oil futures experienced volatile trading on Tuesday due to concerns about slower oil demand growth in China and disappointment with the size of lending rate cuts in the country, Reuters reports.
Increased crude supplies from Iran and Russia also added to the bearish market sentiment. However, expectations of growing oil demand in China and India in the second half of the year limited the price drop.
Brent futures for August delivery fell 0.3% to settle at $75.90 a barrel, while U.S. West Texas Intermediate (WTI) crude for July delivery fell 1.8% to settle at $70.50. The decline in crude prices was led by losses in U.S. gasoline and diesel futures.
Analysts highlighted that oil traders are closely monitoring China's economic rebound and stimulus efforts to gauge the oil demand outlook. Despite concerns, consumption in both China and India is still expected to rise in the coming months.
On the supply side, Iran's crude exports and oil output have reached new highs despite U.S. sanctions, and Russia is set to increase seaborne diesel and gasoil exports, outweighing cuts by OPEC and its allies.
#oil #economics #China
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