Oil prices fell in early trade on Tuesday ahead of a slew of economic data from China, which should provide clues on the outlook for any recovery in demand in the world’s top oil importer.
Oil prices dipped in early trading on Tuesday as market attention turned to upcoming economic data from China, offering insights into the prospects for demand recovery in the world’s primary oil consumer.
U.S. West Texas Intermediate crude slid by 11 cents to $82.40 a barrel, a 0.13 percent decline, while Brent crude futures shed 8 cents, trading at $86.13 per barrel at 0015 GMT.
China’s forthcoming release of July’s industrial production, investment, retail sales, and unemployment figures comes as earlier indicators indicated the country’s second-largest economy experienced deflation and trade contraction.
Amid a tightening cash situation in China’s property sector, major real estate developer Country Garden (2007.HK) is seeking to delay payment on a private onshore bond for the first time.
Read also:Oil prices slide as strong dollar, China’s economic concerns offset 7-Week Rally
Further concerns arise as the People’s Bank of China reported a decline in new bank loans and weakening credit metrics in July. Eurasia Group noted that given China’s sluggish economic recovery and potential OPEC production increases, this year’s price upside may be constrained, leading to a new equilibrium.
Despite China’s economic struggles, their central bank is anticipated to maintain unchanged rates on its medium-term policy loans, while OPEC+ continues to reduce production to bolster prices.
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