Oil Extends Losses as Traders Weigh China Outlook, Iran Supply - Bloomberg

Oil Extends Losses as Traders Weigh China Outlook, Iran Supply - Bloomberg

PRICES: WTI for September delivery slipped 4.1 to $88.33 barrel on the New York Mercantile Exchange at 10:58.m. in London. Brent for October settlement fell 4% to 94.21 a barrel on the ICE Futures Europe exchange. Brent’s prompt spread was $1.05 in backwardation, compared with $4.01 a month earlier.

Oil extended losses at the start of the week as traders weighed concerns about Chinese demand and the prospect for more Iranian supply.

West Texas Intermediate dropped near $88 a barrel, falling as much as 4.3%, with markets selling off as China’s surprise cut in key interest rates boosts support for an economy hit by virus lockdowns and property woes. The nation’s apparent oil demand last month was about 10% lower year-on-year.

“We’re really seeing where China’s economy is at and it’s a lot less rosy than people had hoped, consumption is going to be lower than anticipated, certainly for oil,” Sucden Financial head of research Geordie Wilkes said by phone.