Oil prices traded lower Monday, 15th August, in light of new economic data from China that renewed concerns for a global recession.
Brent crude futures dipped by USD3.05, a 3.1% drop, trading at USD95.10 per barrel after dropping 1.5% on Friday, 12th August.
On the other hand, US West Texas Intermediate (WTI) slipped 2.9%, a USD2.68 drop hitting USD89.41 a barrel falling from 2.4% during previous session.
Moreover, Brent futures reach levels close to where it stood when Russia’s attack on Ukraine was imminent. WTI futures hit its lowest on Monday since February 2022.
China’s central bank cut lending rates to boost demand. The country is the largest crude oil importer while, refinery output dipped 12.53 million barrels per day.
The country’s GDP growth will reach 4% compared to previous 4.4%. China’s GDP expects a further drop.
Meanwhile, Brent crude open interest is down 20% from August 2021.
“Open interest is still falling, with some (market players) not interested in touching it because of its volatility,” said UBS oil analyst Giovanni Staunovo.
Furthermore, a damaged oil pipeline which earlier disrupted output of several offshore US platforms in Gulf of Mexico was repaired late Friday, with oil producers reactivating parts of their halted production.