Oil prices settled near their lowest level since early June on Tuesday, as concerns about demand in China were offset by government pledges to implement economic policy measures and pull U.S. crude and product investments. down.
A series of disappointing economic news from China, the world’s largest oil importer, has weighed on commodity prices. China’s manufacturing activity appears to have declined for a third straight month in July, a Reuters poll showed.
Brent crude was up 8 cents, or 0.1%, at $79.86 a barrel in early trade. It fell to $79.34 during the day, its lowest since June 10. U.S. crude was down 12 cents, or 0.2%, at $75.69.
“Macroeconomic issues continue to shape investor sentiment,” said Tamas Varga of oil brokerage PVM. “China’s economic turmoil, including slow growth and reduced oil imports, remains a key driver of our market.”
Although China’s leaders pledged to increase aid to the economy, expectations for the extent of these measures were limited, as the Third Plenum, a policy meeting in mid-July, largely reaffirmed current economic policy goals.
Top officials of OPEC+, the Organization of the Petroleum Exporting Countries and its allies led by Russia, will meet on Thursday to review the market situation, including a plan to start some cuts produce from October. Currently, no changes are expected.
In OPEC member Venezuela, the opposition claimed to have won 73% of the vote in Sunday’s presidential election, despite the country’s electoral body declaring Nicolas Maduro the winner.
“Nicolas Maduro’s victory in the latest Venezuelan election is a harbinger for global supply as it could lead to tougher US sanctions,” ANZ analysts said in a statement, predicting that such a situation could reduce Venezuela’s oil exports by 100,000-120,000 barrels per day.
Some support could come from the latest reports from the US due this week, which are expected to show lower oil and fuel stocks.
Recommend this article to others!
2024-07-30 19:46:25
#Oil #prices #lowest #level #early #June
