Oil prices fall for the second week as China’s recovery disappoints. On Friday, oil prices fell due to fears about Chinese demand and skepticism about a US-Iran nuclear deal.
The U.S. West Texas Intermediate crude futures fell 22 cents to $70.94, while Brent crude futures fell 26 cents to $75.70.
“Oil prices are expected to stay in a range of about 3 dollars above and below $70 for WTI in the near term,” said Rakuten Securities commodity analyst Satoru Yoshida.
After the U.S. and Iran disputed a Middle East Eye report that they were close to a nuclear deal, both benchmarks fell by approximately $1 on Thursday, recovering from earlier losses of more than $3.
Like last week, they are expected to lose approximately 1%.
After Saudi Arabia’s weekend commitment to major output cutbacks, oil prices rose early in the week, but U.S. fuel stocks rose, and Chinese export statistics fell.
Yoshida said concerns over China’s weak fuel consumption growth offset expectations of tighter supply and rising demand as the U.S. approaches the summer holiday when more people drive.
“Crude prices didn’t get any favours from China as their economic recovery has disappointed,” said OANDA analyst Edward Moya.
India, the world’s third-largest oil consumer, has maintained its economic pace despite China’s delayed recovery.
Diesel sales reached a record high in India in May due to increasing factory activity.
Some economists think oil prices will rise if the Fed doesn’t raise rates on June 13-14. Reuters economists forecast no rise at the meeting.
Moya said the absence of equivalent signals from other major central banks hampered oil demand.
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