Oil fell, joining a retreat in commodities and equity markets, as a soft outlook for China’s economy outweighed lower US stockpiles.
Brent dropped toward $81 a barrel after gaining 0.9% on Wednesday, with West Texas Intermediate near $77. While Beijing further eased monetary policy on Thursday, there’s underlying concern that its slowdown will hamper crude demand. Equities and commodities including copper were also lower.
Crude has eased from a peak at the start of the month amid concern about a soft demand outlook in Asia’s largest economy, which has countered the lift from OPEC+ output curbs and expectations for US interest rate cuts. More broadly, equities have fallen, including the tech-heavy Nasdaq 100 Index.
Crude imports by China which sources supplies from across the globe including Russia, the Middle East, and the Americas were 2.3% lower in the first half on this year than in the same period of 2023.
On Wednesday, the US reported that commercial crude inventories fell by 3.74 million barrels, down for a fourth week, with stockpiles of gasoline and distillates also shrinking.
Brent for September settlement fell 0.8% to $81.09 a barrel at 1:15 p.m. in Singapore.WTI for September delivery was 0.8% lower at $76.97 a barrel.
Source : Bloomberg
