Oil Prices Slip Amid Weaker Chinese Demand and Supply Concerns from Tropical Storm Francine

Oil prices edged down on Tuesday, as concerns over weak Chinese demand outweighed supply disruptions caused by Tropical Storm Francine and continued global oversupply risks. Brent crude futures dipped by 4 cents, or 0.06%, to $72.80 per barrel, while U.S. West Texas Intermediate (WTI) crude futures fell by 10 cents, or 0.15%, to $68.60 per barrel as of 0334 GMT. Both benchmarks had gained around 1% in Monday’s settlement.

Tropical Storm Francine caused the U.S. Coast Guard to close smaller Texas ports, including Brownsville, on Monday, while Exxon Mobil and Chevron began shutting down offshore production platforms. However, the storm’s impact was tempered by global concerns about oversupply and reduced demand from China, where recent data revealed sluggish domestic demand and worsening producer price deflation.

Despite temporary supply disruptions, traders and analysts from Gunvor, Trafigura, and Goldman Sachs expect oil prices to range between $60 and $70 per barrel, driven by weakened Chinese demand growth and persistent global oversupply. Eyes are now on the upcoming reports from OPEC and the U.S. Energy Information Administration, which will offer further insight into the global oil market.