Investing.com — Oil prices fell in Asian markets on Tuesday, with weekly losses expected. This comes amid ongoing concerns about slowing demand in China, a major importer. Meanwhile, concerns about trade disputes with the United States weighed on sentiment.
Meanwhile, crude oil prices rose somewhat on Thursday. The market tightened after a report on US inventories showed a decline in oil stockpiles. But prices extended their weekly losses after disappointing Chinese economic data earlier this week.
September contracts fell 0.5% to $84.73 a barrel, while they were down 0.6% at $80.79 a barrel by 00:26 ET (04:26 GMT).
Both contracts fell between 0.2% and 0.6% this week.
China demand concerns outweigh signs of economic stimulus measures
Concerns about slowing demand from the world's largest oil importer remain a major issue. This was followed by slower-than-expected growth figures in the second quarter.
Data released last week showed China's oil imports fell in June.
Weak Chinese economic figures are also having an impact. As the Third Congress of the Communist Party of China kicks off earlier this week, plans for any additional economic stimulus measures remain slim.
Confidence in China was further undermined by reports earlier this week that the United States was planning tougher trade restrictions on the country’s technology sector, a move that prompted retaliatory measures from Beijing. Speculation about a Donald Trump presidency has further soured sentiment toward China, as Trump has largely maintained his protectionist trade policies.
Trump also said he would push for increased U.S. oil production, a move that could herald increased supply in the coming years.
Tightening markets and hopes of lower interest rates helped support oil to some extent.
But expectations of a tighter oil market in the short term helped support U.S. crude, which fell for a third straight week as demand for travel and fuel increases during the summer.
The possibility of the Federal Reserve cutting interest rates also supports crude oil. Because such a situation provides better conditions for economic growth and demand for oil.
Outside the US, the geopolitical conflict between Hamas and Israel continues. Along with the Houthi invasion of the Red Sea. This creates a significant amount of risk to future pricing in the oil market.
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