Oil prices fell during Tuesday morning Asia session as the world’s largest crude importer China reported a downbeat set of economic data, stoking fears of recession and a fall in demand.
Chinese industrial production grew by 3.8%, slightly lower than the 3.9% figure in June. Retail sales rose 2.7% in July compared with the same period in 2021, below the 5% growth forecast.
Following this, China’s central bank slashed its lending rates, cutting its one-year policy loan rate by 10 basis points to 2.75% on Monday.
Price Action: West Texas Intermediate (WTI) futures fell 0.63% and were trading close to the $88.88/barrel mark. Brent futures, too, lost 0.85% to trade at $94.29/barrel. In the previous session, oil futures had shed close to 3%.
Nuclear Deal: Investors also considered talks to revive the 2015 Iran nuclear deal. According to analysts, more oil is likely to enter the market if Iran and the United States accept an offer from the European Union — a move that would remove sanctions on Iranian oil exports, Reuters reported.
According to an EU official, Iran responded to the European Union's "final" draft text to save a 2015 nuclear deal on Monday, the report stated.
Cues Ahead: Traders are keenly watching out for the industry data on U.S. crude stockpiles set to be released on Tuesday.
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