WASHINGTON (dpa-AFX) - Crude oil prices fell on Monday as concerns about outlook for energy demand outweighed recent data showing a jump in inventories.
Fuel demand concerns resurfaced as new inflation data from China fueled concerns about deflation risks in the world's second-largest economy.
China's consumer inflation was unchanged last month from a year earlier, marking the weakest rate since February 2021.
Factory-gate prices fell further in the month, indicating weak demand in the world's largest crude importer.
West Texas Intermediate Crude oil futures for August ended lower by $0.87 or about 1.2% at $72.99 a barrel.
Brent crude futures were down $0.74 or about 1% at $73.12 a barrel a little while ago.
Both benchmarks gained more than 4% last week to touch their highest marks since May after Saudi Arabia and Russia, the world's biggest oil exporters, announced plans to deepen supply cuts in August.
Edward Moya, Senior Market Analyst at OANDA says oil will struggle this week if inflation readings in the US support the hawkish case for a couple more rate hikes, while Euro-area industrial production remains lackluster. ?
'A bullish backwardation structure should help WTI crude find a home above the $70 level, but it seems unlikely that the demand outlook will get any good news this week. - Recession risks might rise, but it seems energy traders are confident OPEC+ will keep supplies tight,' adds Moya.
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