Oil prices fell on Tuesday after China cut its benchmark lending rates less than expected, raising further concerns about the outlook for oil demand in the world’s largest crude importer.<\/p>\n\n\n\n
Brent crude fell five cents to $76.04 a barrel at 0310 GMT. US West Texas Intermediate crude for July delivery fell 99 cents from Friday’s close at $70.79. The July contract expires at the close of trading on Tuesday.<\/p>\n\n\n\n
The US crude contract for August delivery, the most active, also fell 71 cents from Friday’s closing, to $71.22 a barrel. There was no settlement of US crude on Monday due to a public holiday in the United States.<\/p>\n\n\n\n
Earlier on Tuesday, China cut two benchmark lending rates – the key rate for one-year and five-year loans – by 10 basis points each. The cut, the first in 10 months, was less severe than expected, with 50 percent of respondents polled by Reuters expecting a 15 basis point cut in the five-year lending rate.<\/p>\n\n\n\n
The downgrade came after recent economic data showed that the retail and factory sectors were struggling to maintain the momentum achieved earlier in the year.<\/p>\n\n\n\n
The Chinese government met last week to discuss measures to stimulate economic growth, and several major banks cut their economic growth forecasts for 2023 amid fears that the post-COVID-19 recovery might falter.<\/p>\n\n\n\n
On the supply front, Iran’s crude oil exports and oil production hit new highs in 2023, despite US sanctions.<\/p>\n\n\n\n
Russia is set to increase exports of seaborne diesel and gasoil this month, outpacing cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Moscow itself.<\/p>\n\n\n\n
JPMorgan cut its average Brent crude price estimate to $81 a barrel this year from a previous forecast of $90.<\/p>\n\n\n\n
The bank’s analysts said that the OPEC + cuts are not enough to balance global supply and demand, even if they are extended until 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"
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