Oil prices fall on weak economic data

Oil prices fell more than $2 on Tuesday after disappointing economic data from China, the biggest buyer of crude, revived fears of a global recession and as the market waited for more clarity on talks to revive a deal that could allow more oil exports from Iran. Brent crude futures fell $2.47 to $92.63 a barrel by 15:50 GMT, after hitting a high of $95.95 earlier. US crude contracts fell $2.60 to $86.81 a barrel, after having earlier jumped to $90.65. Both benchmark contracts had fallen about three percent in the previous session. The Chinese central bank cut lending interest rates to revive demand as the economy unexpectedly slowed in July, factory activity and retail sales contracted due to Beijing’s strict zero-Covid policy and a real estate crisis. “Commodity prices across the board have been under pressure, as China’s economic data for July paints a more pessimistic picture of growth than previously expected, leading to renewed concerns about the outlook for demand,” Yip Junrong, a market expert from IG Group, said in a letter. ». Investors are closely following talks to revive the 2015 Iran nuclear deal. Analysts said more oil could enter the market if Iran and the United States accepted a European Union proposal that would lift sanctions on Iranian oil exports. The market is also awaiting data on crude stocks in the United States, which will be released later today from the American Petroleum Institute. A preliminary poll conducted by Archyde.com showed that US oil and gasoline stocks likely fell last week, while distillate stocks rose.