Oil prices fell on Tuesday as bleak economic data from top crude buyer China renewed fears of a global recession. Brent crude futures fell 73 cents, or 0.8%, to $94.37 a barrel by 0313 GMT. WTI crude futures dipped 44 cents, or 0.5%, to $88.97 a barrel. Oil futures fell about 3% during the previous session.
China’s central bank cut lending rates to revive demand as the economy slowed unexpectedly in July, with factory and retail activity squeezed by Beijing’s zero-COVID policy and a property crisis.
“Commodities prices across the board were under pressure as China’s July economic data painted a more downbeat growth picture than previously expected, which prompted renewed concerns on demand outlook,” wrote Yeap Jun Rong,
Market strategist from IG Group, in a note. China’s fuel product exports are expected to rebound in August to near a year high after Beijing issued more quotas, adding pressure to already-cooling refining margins.