The price of Brent crude %Oil, the international benchmark, has fallen below $80 U.S. per barrel and to its lowest level in seven weeks on growing demand concerns.
Brent crude oil is currently trading at $79.30 U.S. a barrel having fallen about 1% in the past 24 hours. It’s the first time since early June that Brent crude prices have been below $80 U.S.
West Texas Intermediate (WTI) crude oil, the U.S. standard, has also declined and is now trading at $75.22 U.S. per barrel.
The price slump comes as doubts rise concerning the strength of global demand, particularly in China, which is the world’s biggest importer of oil and energy products.
Sentiment has turned particularly bearish after China reported its weakest economic growth in five quarters, prompting commodities traders to dump their bullish positions in crude oil.
The negative demand outlook persists despite escalating violence and political tensions in the Middle East, where a rocket strike over the weekend killed 12 children in Israel.
Analysts and traders are now turning their attention to an upcoming meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+).
A meeting scheduled for Aug. 1 could see plans announced to restore oil output in this year’s fourth quarter. The market is split on whether OPEC+ will raise its scheduled output.
Anticipation is also building for the U.S. Federal Reserve to begin lowering interest rates in September of this year, a move that may help to lift crude oil prices.
However, right now, demand concerns, notably in China, are overwhelming all other considerations and depressing crude oil prices, say analysts.
