Oil edged lower on concern that stimulus to revive China’s flagging economic recovery may fall short of expectations.
West Texas Intermediate for August fell from Friday and was trading near $71 a barrel. There was no settlement on Monday in the US due to a holiday. Global benchmark Brent closed down 0.7% in the week’s opening session.
China’s very gradual roll-out of support measures for its ailing economy is fueling a debate among traders over how far authorities will go to bolster growth. The nation is the world’s largest crude importer.
WTI is on course for its first back-to-back quarterly loss since mid-2019. Crude has been under pressure amid ample supplies, including from Russia, coupled with slowing global growth as central banks hike rates to quell inflation. To try to arrest the drop, the Organization of Petroleum Exporting Countries and its allies have scaled back production.
Supplies from the Middle East were also in focus. Iraqi and Turkish officials had been due on Monday to discuss a possible resumption of piped Iraqi oil flows through to the port of Ceyhan. The conduit can carry 500,000 barrels a day.
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Author: Jake Lloyd-Smith
