Oil prices slip on demand concerns in world's #1 importer
ALBAWABA – Demand concerns are weighing on markets as oil prices slip on data showing China’s imports and exports falling more than expected in July, news agencies reported.
Brent crude futures traded at $85.05 a barrel, down $0.29, or 0.34 percent, in early morning trading. Meanwhile, West Texas Intermediate (WTI) crude sold at $81.69 a barrel, down by $0.25, or 0.31 percent.
Oil imports to China in July were 43.69 million metric tons, or 10.29 million barrels per day (bpd), data from the General Administration of Customs showed on Tuesday. These figures show an 18.8 percent fall from imports in June, though China oil imports are still up 17 percent from a year ago.
Despite the gloomy data, some analysts were still positive on China's fuel demand outlook for August to early October as crude processing rates remained high, according to Reuters.
It is the peak season for construction and manufacturing activities starting September and gasoline consumption should benefit from summer travel demand, CMC Markets analyst Leon Li told Reuters.
Demand is expected to gradually decrease after October, he added.
Investors are also awaiting United States (US) oil and fuel products inventory data.
A Reuters poll on Monday showed forecasts for a 200,000-barrel drop in crude inventories and a rise in gasoline stocks by 200,000 barrels.
