Oil Falls on Doubts About Recovery in Demand

Oil prices extended losses on Tuesday, June 8, as Chinese data revealing a decline in the country’s imports of crude in May highlighted concern about the fragility of the global recovery in demand for crude and fuel.

Brent crude was down 49 cents, or 0.7%, at $71 a barrel, after losing 0.6% overnight. US crude fell 44 cents, or 0.6%, to $68.79 a barrel, after losing 0.6% in the previous session.

Chinese crude imports fell 14.6% in May from a high level a year ago, and daily shipments recorded the lowest level this year, as maintenance work in the ranks limited the demand for crude purchases.

Crude prices rose in recent weeks, Brent increased about 40%, and US West Texas Intermediate crude advanced more than that, in light of expectations that demand would return, thanks to the success of some countries in vaccination campaigns for their citizens to prevent Covid-19.