Oil prices drop on weaker Chinese demand forecast
International benchmarks for crude oil settled the trading day on Tuesday, 20 June 2023 marginally lower on concerns over slower than previously expected oil demand growth in China.
International benchmarks for crude oil settled the trading day on Tuesday, 20 June 2023 marginally lower on concerns over slower than previously expected oil demand growth in China.
The People’s Bank of China cut its benchmark loan prime rates (LPR) by 0.1% following disappointing data from the retail and manufacturing sector. The small-than-expected rate cut lends no confidence to oil traders, who are now holding a conservative stance until they see a ‘materialized strong economic rebound in China’.
Adding to the downward pressure is the rising exports from Iran and Russia despite the ongoing sanctions on these countries.
Brent crude dropped 19 cents or 0.3% for August delivery at $75.90/barrel.
US West Texas Intermediate inched down $1.28 or 1.8% at $70.50/barrel for July delivery.