Brent crude was down 67 cents, or 0.86%, at $76.99 a barrel and front month U.S. WTI crude futures, which expire on Tuesday, were at $73.75 a barrel, easing 62 cents, or 0.8%
Oil prices edged lower on Tuesday amid ceasefire hopes in the Middle East, helping ease concerns over supply disruptions in the region.
Brent crude was down 67 cents, or 0.86%, at $76.99 a barrel, as of 0600 GMT. Front month U.S. WTI crude futures, which expire on Tuesday, were at $73.75 a barrel, easing 62 cents, or 0.8%. The more actively traded second month contract was last down 63 cents or 0.86% at $73.03 a barrel.
Brent had declined nearly 2.5% on Monday, while WTI dropped 3%.
Prices seem to find some headwinds from geopolitical developments in the Middle East and China’s demand outlook, said Yeap Jun Rong, market strategist at IG, referring to weak Chinese economic data, which cast doubts on the country’s oil demand prospects.
A ceasefire deal in Gaza now seems more likely than not, which saw market participants pricing out the risks of geopolitical tensions on oil supplies disruption, Jun Rong added.
In the US, crude stockpiles were expected to have declined by 2.9 million barrels last week, a preliminary Reuters poll showed on Monday.
On the demand side, concerns over China’s economic problems pressured oil prices. After a dismal second quarter, the world’s second-biggest economy lost momentum further in July as new home prices declined at the fastest pace in nine years, industrial output slowed, export and investment growth dropped and unemployment rose.
Demand concerns centred around China continue to linger. Recent data releases reinforce the view of weaker Chinese oil demand, ING analysts said in a note to clients.
Trade and industrial output figures last week suggested that apparent oil demand continued to trend lower in July. These worries mean that speculators continue to be hesitant about jumping into the market, they added.
