Oil dropped amid an onslaught of bearish pressures, including weaker-than-expected data from China and fresh concern about the health of the US banking system.
(Bloomberg) — Oil dropped amid an onslaught of bearish pressures, including weaker-than-expected data from China and fresh concern about the health of the US banking system.Â
West Texas Intermediate briefly slipped below $80 a barrel amid a risk-off tone for markets worldwide. China’s trade plunged in July as slowing global demand clouded the outlook for exports, while the nation’s oil imports slipped to a six-month low. The dollar climbed and stocks fell as a ratings downgrade for 10 small and midsize US lenders exacerbated worries of renewed banking tumult.
Oil had advanced to the highest since April early in Monday’s trading, but pessimism about the global economic outlook has stalled that rally. Crude’s big three monthly reports — those from the International Energy Agency, OPEC, and the Energy Information Administration — will offer further updates on the health of the market over the rest of this week.Â
Read More: China’s Oil Imports Slip to Six-Month Low on Sluggish Recovery
The US crude benchmark has erased its year-to-date losses in recent weeks after the Organization of Petroleum Exporting Countries and its allies cut production. On Tuesday, cartel leader Saudi Arabia reaffirmed its commitment to voluntarily curbing supplies next month to balance oil markets. Â
Away from headline prices, Brent crude has weakened markedly versus other oil benchmarks in recent days. It’s now trading at a rare discount to Middle Eastern Dubai crude as OPEC+ output cuts lift the cost of heavier supplies, while its premium to WTI has also contracted to around the smallest since May.Â
To get Bloomberg’s Energy Daily newsletter direct into your inbox, click here.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.