Oil dips as China's demand concerns resurface

Oil prices dipped slightly on Tuesday due to concerns about a slowing Chinese economy affecting demand, although expectations that the U.S. Federal Reserve might soon cut interest rates helped limit the decline.

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By 12:21 GMT, Brent crude futures had decreased by 9 cents, or 0.1%, to $84.76 per barrel, while U.S. West Texas Intermediate (WTI) crude had dropped by 13 cents, or 0.2%, to $81.78 per barrel.

China’s economic growth has been slower than anticipated in the second quarter, hindered by a prolonged property downturn and job insecurity. Official data revealed that the world’s second-largest economy grew by 4.7% in the April-June period, its slowest rate since the first quarter of 2023, falling short of the 5.1% forecast in a Reuters poll and down from the previous quarter’s 5.3% expansion.

China’s refinery output also saw a decline, falling by 3.7% in June compared to a year earlier. This marked the third consecutive month of decline, partly due to planned maintenance. Additionally, lower processing margins and weak fuel demand prompted independent plants to reduce output.