On Thursday, data from China showed its economy lost momentum in July, with new home prices falling at the fastest pace in nine years. Chinese refiners sharply cut crude processing rates last month due to weak fuel demand.
Brent crude futures were down 19 cents, or 0.2%, at $79.49 a barrel at 1332 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 1 cent at $76.64.
“The market is naturally concerned about China’s oil demand,” said SEB analyst Bjarne Schieldrop. “China’s net imports of crude and oil products have been a big disappointment this year.”
Both benchmarks fell nearly 2% last Friday as investors tempered their expectations for Chinese demand growth, but ended the week virtually unchanged after US data showed inflation Oil prices eased despite solid retail spending. “Persistent concerns over sluggish demand in China led to a sell-off,” said Hiroyuki Kikukawa, president of NS Trading, adding that the near end of the peak driving season in the United States was another factor weighing on prices. However, supply risks from Middle East tensions and the escalating war between Russia and Ukraine are underpinning the market, he said. U.S. Secretary of State Antony Blinken arrived in Tel Aviv on Sunday on another Middle East tour to push for a Gaza ceasefire, but Hamas raised questions about the mission by accusing Israel of undermining its efforts.
The mediating countries – Qatar, the United States and Egypt – have so far failed to narrow their differences sufficiently to reach an agreement after months of on-and-off negotiations.
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