Oil prices skid to four-week low on Chinese demand concerns

Oil prices skidded in American trade on Tuesday to four-week lows, sharpening losses for the third straight session on concerns about Chinese demand after data showed China’s GDP slowed down more than expected in the second quarter.

Now traders await initial data on US crude stocks from the American Petroleum Institute, with analysts expecting a drawdown for the third straight week.

Prices 

US crude fell 2% today to $80.24 a barrel, the lowest since July 18, with a session-high at $81.88.

Brent fell 1.6% to $83.33 a barrel, the lowest since June 17, with a session-high at $84.82. 

On Monday, US crude lost 0.25%, while Brent shed 0.2%, the second loss in a row.

Chinese Demand 

Recent official data showed China’s GDP grew by 4.7% in the second quarter, the slowest pace since early 2023, while analysts expected 5.1%. 

The slower growth came after the 5.3% growth rate in the first quarter, with the recent quarter affected by the prolonged real estate crisis. 

US Stocks 

Later today, initial data on US crude stocks will be released from the American Petroleum Institute, expected to show a drawdown for the third straight week, with official data from the EIA due tomorrow.