Oil prices fell on Tuesday as gloomy economic data from top crude buyer China renewed fears of a global recession.
On the New York Mercantile Exchange, West Texas Intermediate (WTI) futures for September delivery fell $0.44, or 0.5%, to $88.97 a barrel, while the barrel of North Sea Brent oil fell by $0.73 to $94.37. In the previous session, both WTI and Brent crude oil prices fell by around 3%.
China’s central bank cut interest rates to boost the economy, which unexpectedly slowed in July amid restrictions imposed by Beijing and a housing crisis.
“In general, commodity prices are under pressure after China’s July economic data was much weaker than previously estimated, which renewed fears about the evolution of demand,” said Yeap Jun Rong, analyst at IG Group.
In the United States, total production in major oil shale basins was expected to rise in September to 9.049 million bpd, the highest level since March 2020, according to a report from the US Energy Agency.