Oil prices slumped for the fourth straight session on demand concerns
This downturn is largely attributed to the growing concerns over the demand in China, with investors remaining cautious in the wake of the People's Bank of China's unexpected 10-basis point interest rate cut earlier this week. The market's disappointment was further fueled by the Third Plenum's failure to introduce significant support policies.
International crude oil benchmarks plummeted nearly 2% on Tuesday, 23 July, marking their fourth straight decline. This downturn is largely attributed to the growing concerns over the demand in China, with investors remaining cautious in the wake of the People's Bank of China's unexpected 10-basis point interest rate cut earlier this week. The market's disappointment was further fueled by the Third Plenum's failure to introduce significant support policies.
Compounding the bearish sentiment are rising expectations of a protracted ceasefire in Gaza, which is anticipated to alleviate some geopolitical risk premiums.
Brent crude dropped $1.39, or 1.7%, closing at $81.01 per barrel. Meanwhile, WTI fell $1.44, or 1.8%, settling at $76.96 per barrel. Both benchmarks have now entered technically oversold territory for the first time since 7 June 2024.
Written by: Rochelle Nguyen