Oil prices are falling as investors evaluate Chinese data and the OPEC demand outlook

Oil prices fell slightly on Friday as investors weighed the upbeat demand outlook from the Organization of the Petroleum Exporting Countries (OPEC) and at the same time mixed economic data from China.

Brent crude fell 15 cents to $86.25 a barrel by 0515 GMT, while US West Texas Intermediate crude futures fell 13 cents to $82.69 a barrel.

Both benchmarks have been posting highs since June, with West Texas Intermediate crude trading on Thursday at its highest level this year and Brent crude hitting its best price since January.

On Thursday, OPEC said it expected global oil demand to rise by 2.25 million bpd in 2024, compared to an increase of 2.44 million bpd in 2023. Both forecasts were unchanged from last month.

OPEC said that “strong” economic growth and continued improvement in China is expected to lead to an increase in oil consumption in 2024.

However, Ting also noted that “weak economic data from China and a decline in Wall Street weigh on risk sentiment, and a stronger dollar is also putting pressure on commodity prices.”

While customs data showed crude oil imports rose year-on-year, China’s total exports fell 14.5 percent from a year ago, with monthly crude imports falling from near-record highs in June to their lowest since January.

Data this week also showed that China’s consumer price index fell and factory gate prices continued to fall in July, raising concerns about fuel demand in the world’s second-largest economy.