Oil prices dip slightly on demand concerns

By Nada Ali On Jul 17, 2024

Oil prices edged down on Wednesday, on worries about weakening demand in China, the world’s largest importer.

Brent crude fell 0.2 per cent to $83.58 a barrel, hovering near a one-month low. West Texas Intermediate (WTI) crude dipped 0.2 per cent to $80.63 a barrel.

China’s GDP growth in the second quarter was only 4.7 per cent, the slowest since early 2023, leading to concerns about lower oil demand.

On the other hand, an unexpected decrease in US crude oil stockpiles helped decrease the losses. The American Petroleum Institute (API) reported a 4.4-million-barrel drawdown for the week ending July 12th, surpassing analysts’ predictions.

“And steady U.S. retail data points out that the economy is still healthy despite higher borrowing costs. This neutralises fears of a slowdown in the US economy and fears of dented demand for oil,” Sachdeva said.

Meanwhile, rising geopolitical risks, such as the recent attack on a Liberia-flagged oil tanker in the Red Sea by Yemen’s Houthis, are also seen as a factor limiting further oil price declines.

Attribution: Reuters.