LONDON: Oil prices fell on Monday as questions over China’s economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States.
Brent crude fell 17 cents, or 0.2%, to $76.44 a barrel by 0944 GMT while US West Texas Intermediate (WTI) crude lost 31 cents, or 0.4%, to $71.47.
Both contracts ended last week with gains of more than 2%. “(China’s) economy is navigating through powerful headwinds,” said PVM oil analyst Tamas Varga.
A number of large banks have cut their forecasts on China’s 2023 growth in gross domestic product after May data last week showed the post-COVID recovery in the world’s second-largest economy was faltering.
China is widely expected to cut its benchmark loan rates on Tuesday after a similar reduction in medium-term policy loans last week to shore up a shaky economic recovery.
The oil and gas rig count, an early indicator of future output, fell by eight to 687 in the week to June 16 for the lowest total since April 2022.
