Crude oil prices started the week lower as weak economic data from the US and China raised concerns about weaker demand in the world’s largest oil consumer. The international benchmark Brent crude traded at $74.03 a barrel, down 1.02% from $74.79 a barrel at the close of trading on Friday.
At the same time, US benchmark grade West Texas Intermediate (WTI) was trading at $69.46 a barrel, down 1.01% from the previous closing price of $70.17 a barrel.
Concerns about declining global oil demand and slowing economic growth weighed on prices.
In the United States, economic growth has slowed in recent months due to high inflation and high interest rates. Experts are now awaiting the expected US consumer inflation data on Tuesday and the expected Fed interest rate decision on Wednesday.
Negative economic data from China, the world’s largest oil importer, also raised concerns about weakening demand.
Producer prices fell 4.6 percent in April from a year earlier, while consumer prices rose 0.2 percent, according to the China Bureau of Statistics.
The statistics showed that China’s economic recovery has been slower than expected since COVID-19 restrictions were lifted. Additionally, Iran’s message that it was willing to reach an agreement with the West on its nuclear program also helped push prices down. Iran’s Supreme Leader Ayatollah Ali Khamenei said on Sunday that a nuclear deal with the West would be welcome as long as the country’s nuclear industrial infrastructure remains intact.
Ayatollah Khamenei’s remarks have raised fears that the oil market could become unbalanced. Market participants fear that Iranian oil could flood the market once sanctions on Iranian oil exports are lifted.
