Crude oil prices held close to a six-week low during early trading hours on Monday, reflecting ongoing concerns about declining demand from China.
In the latest market activity, global crude benchmark Brent futures traded at $81.23 per barrel as of 0245 GMT, marking a slight increase of 0.1% from the previous close. Conversely, U.S. West Texas Intermediate (WTI) futures were down 0.03%, trading at $77.14 per barrel.
Last Friday, oil prices fell approximately 1.5%, pushing them near a six-week low. This drop was attributed to data released last week showing a 11% decrease in China’s oil imports during the first half of 2024. Given that China is the world’s largest oil importer, fluctuations in its demand significantly impact global crude prices.
Looking ahead, market attention will focus on the upcoming meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) scheduled for Thursday, August 1. The meeting is anticipated to affect crude oil prices, with traders awaiting potential decisions on whether to adjust global oil output. At its last meeting in June, OPEC+ decided to extend its voluntary production cuts through 2025.
Additionally, the U.S. Federal Reserve is set to announce its interest rate decision on Wednesday, July 31, a day before the OPEC+ meeting. While the Fed is expected to maintain current interest rates, analysts predict that signals of a potential rate cut beginning in September could boost market sentiment.
Expectations of rate cuts could support higher crude prices, as increased liquidity in the U.S. economy—home to the world’s largest oil consumer—may enhance oil demand.
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