Oil prices fall as China slowdown spurs concern over demand outlook
Oil fell as the week’s trading kicked off, after poor Chinese economic data added to concerns that a global slowdown may sap demand.
West Texas Intermediate dropped toward $97 a barrel after sinking almost 7% in July in the first back-to-back monthly loss since late 2020. Weekend data indicated a surprise contraction in Chinese factory activity, highlighting the cost of Beijing’s preference for mobility curbs to tackle Covid-19.
Oil has seen volatile trading in recent months as concerns about a slowdown hurt demand for commodities even as underlying signals pointed to still-tight physical conditions. Data last week showed the US economy shrank for a second quarter, while the Federal Reserve hiked rates by 75 basis points.
