Oil prices fall sharply as Chinese data cast shadow over geopolitical risks
Date
8/18/2024 8:47:28 AM
(MENAFN) On Tuesday, oil prices experienced a significant drop, falling more than USD2 a barrel and heading towards a weekly loss. brent crude, which had previously been above USD80 a barrel, slipped below this threshold, settling at USD78.85 a barrel after a USD2.19 decrease, or 2.70 percent. This decline was driven by a series of disappointing economic indicators from China for July, which overshadowed concerns related to geopolitical tensions.
Similarly, U.S. West Texas Intermediate (WTI) crude futures fell by USD2.39, or 3.06 percent, to USD75.77 a barrel. Both Brent and WTI, which were initially on track for weekly gains, reversed their course in yesterday's trading session. Brent is now poised for a weekly decline of 1 percent, while WTI is set for a 1.4 percent loss. This turnaround reflects the impact of weaker-than-expected economic data from China on market sentiment.
The bearish sentiment in the oil market was further compounded by OPEC’s recent adjustment to its demand forecast for the year, attributing the revision to a sluggish outlook in China. Additionally, the resumption of oil flows to Libya's Es Sider port following pipeline maintenance contributed to the downward pressure on prices. Analysts, including Garav Sharma, noted that these factors, combined with upcoming decisions by the US Federal Reserve on interest rates, are influencing the current oil price trajectory.
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