Oil prices fall as banks slash, China growth estimates. Last week’s gains were erased on Monday as concerns over China’s economy trumped OPEC+ supply cuts and the seventh straight decline in U.S. oil and gas rigs.
By 0042 GMT, Brent crude fell 68 cents to $75.93, while WTI fell 59 cents to $71.19.
Brent climbed 2.4% and WTI 2.3% last week.
After last week’s May data showed China’s post-COVID recovery slowing, several major banks lowered their 2023 GDP growth projections.
Sources told Reuters that China would stimulate it’s slowing economy this year. Still, debt and capital flight concerns will keep the measures focused on consumer and private sector demand.
Still, China’s refinery throughput surged in May to its second-highest total, helping bolster last week’s advances. U.S. energy businesses dropped oil and natural gas rigs for the seventh week in a row for the first time since July 2020.
The oil and gas rig count, an early indicator of future production, fell by 8 to 687 in the week to June 16, the lowest since April 2022.
Oil prices are also supported by voluntary output curbs by OPEC and its allies in May and Saudi Arabia in July.
“There were also signals that the U.S. driving season would bring strong demand,” ANZ Research wrote, noting that gasoline demand rose to 9.24 million barrels per day last week, its highest level since December 2021.
Comment Template