WASHINGTON (dpa-AFX) - Crude oil prices fell on Thursday amid uncertainty about outlook for energy demand following weak data from China.
Traders have shrugged off a report from OPEC that forecasts an increase in Chinese oil demand. The OPEC report says China is now expected to require 800,000 barrels per day, up from 760,000 barrels per day seen last month.
A firm dollar weighed as well on oil prices. The dollar index climbed to 102.15, gaining nearly 0.7%.
West Texas Intermediate Crude oil futures for June ended lower by $1.69 or about 2.3% at $70.87 a barrel.
Brent crude futures were down $1.44 or 0.88% at $74.97 a barrel a little while ago.
'Debt ceiling drama will eventually play a larger driver for oil prices, but right now whatever downside we are seeing with prices appears to be limited,' says Edward Moya, Senior Market Analyst at OANDA. 'Oil looks like it is ready to consolidate here. A lot of the bad news has been priced in so fresh monthly lows seem unlikely.'
Concerns over the problems ailing the banking sector are weighing as well on the markets. Shares of PacWest plunged today after reports that deposits dropped 9.5% last week. 'Banking stress won't be going away anytime soon as we await to see which banks put too much in long-dated Treasuries,' says Moya.
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