2023-06-20 19:58:05
Crude oil futures fell about 2 percent in volatile trading, amid expectations of slowing oil demand growth from China, the world’s second-largest oil consumer, and market disappointment over the amount of reduction in China’s main lending interest rates.
Brent futures for August delivery lost $1.11, or 1.5 percent, to $74.98. US West Texas Intermediate (WTI) crude for July delivery fell $1.66, or 2.3 percent, to $70.12 in its last trading days as a US front-month contract.
West Texas Intermediate crude fell 2.2 percent to $70.31 in the August delivery contract, which will soon become the front-month contract in the United States.
China cut its main lending rate for the first time in 10 months, but by a smaller than expected 10 basis points for the five-year lending rate. The rate cut came after recent economic data showed that China’s retail and manufacturing sectors were having difficulty maintaining the momentum seen earlier this year.
An expert at the research unit of the China National Petroleum Corporation said that Chinese demand for crude oil will grow at a lower rate than expected, with gasoline consumption affected by the demand for electric cars.
China’s crude oil imports fell in May after hitting a ten-year high in April, while exports of low-sulphur marine fuel rose, according to data from the General Administration of Customs. Crude prices were also affected by the rise of the dollar index against a basket of currencies due to data showing a jump in home construction in the United States.
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