The fragility of the global recovery in crude oil and fuel demand continues. Oil prices tumbled further on Tuesday as concerns over the situation escalated with data showing that China’s oil imports fell in May.
Brent crude was down 11 cents, or 0.2%, to $71.38 a barrel as of 0151 GMT, after falling 0.6% overnight. West Texas Intermediate (WTI) oil fell 13 cents, or 0.2%, to $69.10 a barrel, after falling 0.6% in the previous session.
Crude oil prices have soared in recent weeks, with Brent up nearly 40% this year and WTI gaining more.
Restriction on supply by the Organization of the Petroleum Exporting Countries and its allies also helped support prices.
Portfolio managers increased their positions in petroleum last week, reversing roughly half the sales over the previous three weeks, as benchmark oil prices started to break up through the recent ceiling.
Hedge funds and other money managers purchased the equivalent of 40 million barrels in the six most important futures and options contracts in the week to June 1, after selling a total of 74 million over the previous three weeks.
The weakness in the Asian market must be taken into account.
China’s crude oil imports fell 14.6% from the previous year’s level in May as maintenance at refineries limited oil purchase demand, with the daily crude oil amount arriving the country reaches at its lowest level this year.
Some countries, including major oil importers such as India, are battling waves of infections that continue to threaten the expected rise in global demand in the second half of this year.
