Oil prices tumbled on extended worries on Chinese demand.

International benchmarks for crude oil continued heading south on Tuesday, 22 August 2023 instigated by China’s persistent economic woes that is expected to cripple demand in the world’s top crude importer. 

Industry experts have been expecting China to account for 40% of the global oil demand growth in 2023 as the country exited from the three-year lockdown. However, dwindling economic performance and the government eschewing large capital injections to boost growth have many investors worried.

In addition, the US Federal Reserve has not dismissed the possibility of more interest rate lifts to curb inflation, further dimming the demand prospect.

Brent crude settled down 43 cents or 0.5% at $84.03/barrel.

US West Texas Intermediate inched down 37 cents to $80.35/barrel.