WASHINGTON (dpa-AFX) - Crude oil prices fell on Tuesday amid concerns about the outlook for energy demand due to the economic slowdown in China.
Disappointment with the size of cuts with China's key lending rates hurt oil prices.
Fears of further tightening by the Federal Reserve and other central banks and the likely impact on global economic growth weighed as well on oil prices.
West Texas Intermediate Crude oil futures for August ended down $0.74 at $71.19 a barrel.
Brent crude futures were down $0.19 at $75.90 a barrel a little while ago.
China's central bank cut two key benchmark interest rates in a bid to counter the post-COVID growth slowdown in the world's second-largest economy.
The People's Bank of China cut two key policy rates, including a benchmark for corporate loans and another used to price mortgages by 10 basis points each, the first such reductions in 10 months in an effort to bolster economic growth.
China's fuel oil imports dropped slightly in May, after hitting a record high in April. The impact of rising oil exports from Iran and Russia outweighed the production cut measures implemented by OPEC.
'Oil seems locked in on anything and everything that has to do with China,' says Edward Moya, Senior Market Analyst at OANDA. 'Last week, oil was supported by improving Chinese refiner quotas. This week, energy traders are seeing oil weakness emerge on disappointing stimulus efforts.'
'WTI crude looks like it is starting to find some decent support at the $68 region and that should hold as long the Fed does spook markets that they might be ready to deliver more than two additional rate hikes,' adds Moya.
Copyright(c) 2023 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX