Oil prices turned lower today, Wednesday, extending the losses of the previous session, which amounted to 1 percent, as weak economic data from China overcame the scarcity of US crude supplies.
Brent crude futures fell 21 cents to $84.68 a barrel at 0249 GMT, while US West Texas Intermediate crude fell 20 cents to $80.79. The two benchmarks fell to their lowest levels since August 8 on Tuesday.
“Fears that the faltering Chinese economy will affect demand outweighed the impact of the lack of supply in the oil market,” ANZ analysts said in a note to clients.
And market sources announced, quoting figures from the American Petroleum Institute, that crude stocks in the United States fell by about 6.2 million barrels last week.
US government data on inventories is due later in the day.
Chinese economic activity data for July, released on Tuesday, continues to drive the market lower, after retail sales, industrial production and investment missed expectations, raising concerns about a more severe and prolonged slowdown in the growth of the world’s second-largest economy.
Beijing has cut key interest rates to support activity, but analysts say more support is needed to spur growth.
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