Oil prices fall amid demand uncertainties in US, China

Oil prices fell on Monday due to uncertainties over demand in the US and China, the world's largest oil consumers.

International benchmark Brent crude traded at $82.45 per barrel, down 0.22% from the previous session's close of $82.63 per barrel, News.Az reports.

American benchmark West Texas Intermediate (WTI) traded at $78.45 per barrel at the same time, a 0.24% decrease from the prior session's close of $78.64 per barrel.

The US Federal Reserve (Fed) is set to review its policy on July 30-31. While investors expect the Fed to keep rates unchanged, they are also looking for indications of a potential rate cut in September. Experts believe that maintaining high interest rates for an extended period could negatively impact the oil demand outlook. Conversely, reducing rates soon would likely boost economic activity and increase oil demand.

US President Joe Biden's announcement on Sunday that he is dropping out of the re-election race and backing Vice President Kamala Harris had little impact on the oil markets.

Concerns over slower-than-expected economic growth in China, the world's largest crude oil importer, also weighed on oil prices. China's gross domestic product (GDP) rose by 4.7% in the second quarter of 2024, below market expectations, according to official data. This followed reports of weakened oil imports.

In an unexpected move, China lowered a key short-term policy rate and benchmark lending rates on Monday to stimulate the economy.

News.Az