Oil Prices fall as China and the United States Release Important Data
If the United States and Iran agree on a nuclear deal in 2015, the oil supply could also rise due to the lifting of sanctions on Iran.
Losses have been extended from the previous oil session after China released economic data that sparked concerns around the potential global recession hitting energy demands. Keep in mind, that China is the world’s largest crude importer.
Brent crude shed $0.90 to $94.20/barrel and WTI shed nearly $0.80 to $88.60/barrel. In oil’s previous session, futures shed a total of 3%.
China released economic data that showed the country’s central bank cut rates as data showed a slowing economy in July. Factory and retail activity also squeezed as China continues to cling to its zero-Covid policy. Tie this as well with the ongoing property crisis in the country. Fuel product exports are expected to rebound this month to near highs for the year.
In the United States, September will see the shale oil basins rise to 9.05 Million barrels per day. This is the highest amount since March 2020. Industry data from the United States have been a waiting game for market participants. Stockpiles for oil and gas have fallen as well. If the United States and Iran agree on a nuclear deal in 2015, the oil supply could also rise due to the lifting of sanctions on Iran.