Oil prices dipped on Tuesday on worries of a slowing Chinese economy crimping demand and despite a growing consensus the U.S. Federal Reserve could begin cutting its key interest rate as soon as September.
Brent futures were down 67 cents, or 0.8 per cent, to $84.18 a barrel by 0811 GMT, while U.
S. West Texas Intermediate (WTI) crude fell 72 cents, or 0.9 per cent, to $81.
19. The weaker Chinese economic data “cast some doubts on whether market participants are being overly optimistic” regarding China’s oil demand outlook, IG market strategist Yeap Jun Rong wrote in an e-mail. The world’s second-largest economy grew 4.
7 per cent in April-June, official data showed, its slowest rate since the first quarter of 2023 and missing a 5.1 per cent forecast in a Reuters poll. It slowed from the previous quarter’s 5.
3 per cent expansion, hamstrung by a protracted property downturn and job insecurity. “Its 2Q GDP and retail sales figures had surprised on the downside by a significant margin, while anticipation for stronger stimulus measures at the Third Plenum may face the risk of disappointment,” Yeap added, referring to a key economic leadership meeting in Beijing this week. In the U.
S., Fed Chair Jerome Powell said on Monday the three U.S.
inflation readings over the second quarter of this year “add somewhat to confidence” that the pace of price increases is returning to the central bank’s target in a sustainable fashion, remarks which market participants interpret.