Oil Prices Slip Amid China Worries, Mideast Talks

19 Aug 2024 , 09:23 AM

Oil prices fell in early Asian trading on Monday as concerns about weakening demand in top oil importer China impacted on market mood, while investors focused on the development of Middle East ceasefire talks, which might alleviate supply worries.

Brent crude futures fell 13 cents, or 0.2%, to $79.55 a barrel. U.S. West Texas Intermediate crude futures fell 13 cents, or 0.2%, to $76.52 per barrel.

Both benchmarks sank about 2% last Friday as investors reduced expectations for Chinese demand growth, but the week ended virtually unchanged from the previous week when a batch of U.S. data indicated inflation was easing and retail spending remained strong.

On Thursday, data from China revealed that its economy lost impetus in July, with new home prices falling at the fastest rate in nine years, industrial output declining, and unemployment rising.

That has raised concerns among traders about a drop in demand from China, where refineries cut crude processing rates considerably last month due to low fuel demand.

Meanwhile, U.S. Secretary of State Antony Blinken landed in Tel Aviv on Sunday for another Middle East visit to press for a cease-fire in Gaza, but Hamas questioned the mission, accusing Israel of hindering its efforts.

The mediating countries – Qatar, the United States, and Egypt – have failed to narrow enough gaps to achieve an agreement after months of on-off negotiations, and violence has persisted unabated in Gaza on Sunday.

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