China Demand Concerns Weigh on Oil Prices

Geopolitical tensions and oil disruptions counter concerns over slow demand in China

Oil prices have retreated slightly after a previous day’s rally, as tensions in the Middle East and disruptions in U.S. oil production offset concerns over slow demand growth in China. Brent crude futures fell by 17 cents to $78.93 a barrel, while U.S. West Texas Intermediate crude futures slid 3 cents to $74.05. The International Energy Agency (IEA) and OPEC have both forecasted strong growth in global oil demand, boosting investor sentiment. However, worries surrounding China’s economic recovery and the possibility of the U.S.-China conflict heating up again as the U.S. election approaches are still lingering, putting a damper on oil prices.