WASHINGTON (dpa-AFX) - Oil prices dropped on Monday as concerns about the outlook for energy demand due to weak economic recovery in China outweighed tight supply in the market.
A stronger dollar amid speculation the Federal Reserve will keep interest rates higher for longer time to control inflation weighed as well on oil prices.
West Texas Intermediate Crude oil futures for September ended lower by $0.68 or about 0.8% at $82.51 a barrel.
Brent crude futures settled at $86.21 a barrel, down $0.60 or about 0.7% from the previous close.
A report from the International Energy Agency on Friday said supply cuts by Saudi Arabia and Russia will likely erode oil inventories over the rest of the year, and drive prices higher.
In China, concerns mounted around Country Garden, a major property developer, which is now on the brink of default.
Meanwhile, China's new bank loans tumbled in July and other key credit gauges also weakened, deepening investor concerns about the health of the world's second largest economy and sending the yuan to a six-week low.
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