ISTANBUL, Aug 22 — Oil prices posted limited decreases today over demand worries triggered by fears of a slowdown in China’s economic growth and expectations of further interest rate hikes in the US, reported Anadolu.
International benchmark Brent crude traded at US$84.36 (RM392) per barrel at 10.16 am local time (0716GMT), a 0.12 per cent fall from the closing price yesterday of US$84.46 per barrel.
The American benchmark West Texas Intermediate (WTI) traded at the same time at US$80.06 per barrel, down 0.07 per cent from the previous session close of US$80.12 per barrel.
Tight global supply concerns, after output curbs from Opec+ countries, Saudi Arabia and Russia, have kept oil prices trading close to their highest levels this year.
However, demand worries triggered by fears of a slowdown in economic growth in China and expectations of further interest rate hikes in the US dampened sentiment.
The prospect of softer Chinese demand after a disappointing interest rate cut is putting pressure on oil prices.
Last month, China’s producer pricing index (PPI) fell by 0.3 per cent while the consumer price index (CPI) fell by 4.4 per cent; both fell simultaneously for the first time since 2020, triggering deflation concerns.
Yesterday, the People’s Bank of China (PBOC) lowered its one-year loan prime rate to 3.45 per cent from 3.55 per cent, but left its five-year rate unchanged.
Meanwhile, the possibility of further rate hikes in the US is also underpinning the decline in oil prices.
While markets await more signals on the US Federal Reserve’s (Fed) monetary policy, investors fear that higher US rates could potentially hurt oil demand in the world’s largest oil consumer. — Bernama-Anadolu
