Crude prices were mixed due to concerns about reduced demand in China and geopolitical tensions.
China’s economy expanded by 4.7% in the second quarter, its slowest growth since early 2023, suggesting weaker global oil demand.
US retail sales were muted and could add to the concerns about a broader economic slowdown in addition to elevated levels in interest rates. China’s crude oil sector exhibited significant weakness, marked by reduced imports and increased stockpiling.
In June, the second-largest oil consumer in the world added to its reserves due to lower refinery throughput and crude imports which could continue to put pressure on global crude prices.
Conversely, geopolitical tensions in the Middle East and Europe could continue to provide a floor for prices and could continue to fuel risks. At the same time, the larger-than-expected decline in API crude inventories helped stabilize prices after a three-day loss streak. The market could also react to inventory data from the EIA today and could record some volatility as a result.
