(Date change, price update, China data added, Israel warning and analyst comments)
NEW DELHI – Oil prices fell in Asian trade Monday after a survey Friday showed weaker demand from U.S. consumers and crude production rose in May in China, the world’s largest crude importer .
Brent oil futures for August delivery were down 29 cents, or 0.4 percent, at $82.33 a barrel at 0330 GMT. West Texas Intermediate crude oil futures for July delivery were also down 29 cents at $78.16 a barrel.
The more active WTI contract for August delivery also slipped 0.4% to $77.76 a barrel.
Prices fell on Friday after a survey showed U.S. consumer sentiment fell to a seven-month low in June as households worried about their personal finances and inflation.
However, both benchmark contracts still gained nearly 4% last week, the largest weekly percentage gain since April, thanks to signs of stronger fuel demand.
“Last week’s sharp rise was fueled by OPEC+ and IEA forecasts of strong demand in 2024. However, given OPEC’s direct interest in crude oil, There is some skepticism about OPEC’s forecasts,” said Tony Sycamore, a market analyst at IG in Singapore.
“Friday’s lackluster U.S. consumer confidence numbers suggest the resilience of the U.S. consumer and the U.S. economy will be tested as households cut back on savings to combat rising interest rates and cost of living pressures,” he added.
Meanwhile, China’s domestic crude oil production rose 0.6 percent in May to 18.15 million tonnes, according to data released by the National Bureau of Statistics on Monday.
Since the start of the year, production amounts to 89.1 million tonnes, an increase of 1.8% compared to the previous year. Domestic crude oil production fell 1.8 percent in May from a year earlier to 60.52 million tons, with a year-to-date total of 301.77 million tons, in increase of 0.3% compared to the previous year.
The country’s industrial output in May fell short of expectations and the slowdown in the real estate sector showed no signs of easing, increasing pressure on Beijing to support growth.
There
The data wave
was largely negative, highlighting the bumpy recovery of the world’s second-largest economy.
Geopolitically, fears of a wider war in the Middle East persisted after the Israeli military appealed for help from the European Union.
the Israeli army
said on Sunday that the Lebanese Hezbollah movement’s intensified cross-border firing into Israel could trigger a serious escalation.
After last week’s relatively intense exchanges, Hezbollah fire fell sharply on Sunday, while the Israeli army said it had carried out several airstrikes against the group in southern Lebanon.
Markets in Singapore, an oil trading hub, and other countries in the region were closed Monday due to a public holiday.
