Oil prices reduced once again today, hovering near multi-month lows, as recession fears hurt demand outlook and data pointed to a slow recovery in China’s crude imports last month.
Brent crude futures dropped 74 cents, to $94.18 a barrel earlier today. Front-month prices hit the lowest levels since February last week, tumbling 13.7 per cent and posting their largest weekly drop since April 2020.
US West Texas Intermediate crude was at $88.34 a barrel, down 67 cents, extending losses after a 9.7 per cent fall last week.
China, the world’s top crude importer, imported 8.79 million barrels per day (bpd) of crude in July, up from a four-year low in June, but still 9.5 per cent lower than a year ago.
Oil demand for 2022 is now estimated to rise by 1.8 million bpd year-on-year and settle at 99.7 million bpd, just short of pre-pandemic highs.