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Oil dipped further on spiked demand worries

06 Aug,2024
Oil dipped further on spiked demand worries

Oil dipped further on Tuesday, extending its slump following steep losses as concerns spurred that the potential escalated conflict in the Middle East have been overshadowed by the impact of slowing economic growth on global demand.

Brent futures slid by 0.6% to $75.82 a barrel while WTI slumped by 0.7% to $72.44 per barrel.

Traders were keeping an eye out for potential supply disruptions from the conflict in the middle east, which might signal tighter conditions in the oil markets.

Although, oil prices have been recovering from major losses over the past month, falling to seven-month lows due to worries about cooling growth and decreasing demand.

The disappointing US labor data, especially Friday’s nonfarm payroll numbers, came after troubling reports from China, notably regarding its manufacturing sector. The lackluster Chinese data heightened concerns about weakening demand from the world’s largest oil importer.

More figures from China are anticipated this week with focus squared on trade figures for more signals on the Chinese import.

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