Brent loses over 1.5% on Chinese demand concerns

International benchmark Brent lost over 1.5% in European trade on track for the third loss in a row on renewed concerns about fuel demand in China, the world's second largest fuel consumer.

Prices are also pressured by concerns about the US debt ceiling talks as the deadline approaches by the end of May.  

Brent Price Today

Brent fell over 1.5% to $74.61 a barrel, with a session high at $76.00 a barrel, after losing 0.1% on Friday, the second loss in a row on Chinese demand concerns. 

Brent rose 2.25% last week, the first weekly profit in five weeks on optimistic outlook for demand in the second half of the year. 

Chinese Demand

Investors remain concerned about the performance of the Chinese economy after weak data in the last two weeks, which showed China continues to suffer the consequences of the Covid 19 pandemic. 

Analysts in particular point to the weakness in the housing sector and the failure of Chinese policymakers to respond to it. 

US Debt Ceiling 

Now traders await an important meeting today between US President Joe Biden and top Congressional Republican Kevin McCarthy to discuss the debt ceiling crisis. 

G7

The G7 group has vowed to double down on efforts to contain Russia's efforts to escape the cap on its fuel and oil exports impose by western nations, while avoiding the harmful impact on global energy supplies. 

The International Energy Agency

The IEA said it's unlikely for such measures to change the current status of supplies worldwide, with the agency maintaining its current forecasts. 

The EIA warned in its last monthly meeting of an upcoming shortage that might occur in the second half of the year, with demand expected to surpass supplies by nearly 2 million bpd.