Oil prices fell in Asian trading on Monday after a survey on Friday showed weak consumer demand in the United States and May crude oil production rose in China, the world’s largest crude importer.
Brent crude futures for August delivery were down 40 cents, or 0.5%, at $82.22 a barrel at 06:31 GMT. WTI crude oil futures for July delivery fell 36 cents to $78.09 a barrel.
The more active WTI contract for August delivery fell 0.5% to $77.7 per barrel.
This comes after prices fell on Friday following a survey that showed US consumer confidence fell to a seven-month low in June as households worried about their personal finances and inflation.
Last week’s strong rally in oil was supported by strong 2024 demand forecasts from OPEC+ and the IEA. Both benchmark contracts rose nearly 4% last week, the biggest weekly gain in percentage terms since April, on signs of strengthening fuel demand. However, there is some doubt about OPEC’s forecasts.
Friday’s weak US consumer confidence figures suggest the resilience of the American consumer and the US economy will be tested as households drain their savings to combat high interest rates and cost-of-living pressures.
Meanwhile, China’s domestic crude oil production in May rose 0.6% year on year to 18.15 million tons, according to data released by the National Bureau of Statistics on Monday.
Year-to-date production has reached 89.1 million tons, an increase of 1.8% compared to the previous year. National crude oil production decreased by 1.8% to 60.52 million tons in May compared to the same level of the previous year; The total since the beginning of the year reached 301.77 million tons, with an increase of 0.3% compared to the previous year.
The country’s industrial production in May fell short of expectations and the slowdown in the real estate sector showed no signs of easing, increasing pressure on Beijing to support growth.
Monday’s data was largely negative, underscoring a bumpy recovery for the world’s second-largest economy.
On the geopolitical front, concerns about a wider Middle East war remained after the Israeli military said on Sunday that the Hezbollah movement in Lebanon could trigger serious tensions. The Israeli army announced that it carried out several air strikes against the group in southern Lebanon.
Markets in major oil trading hub Singapore and other countries in the region were closed on Monday for a public holiday.
