Crude remains near multi-month lows on demand concerns



File image of workers checking drill pipes for the Iraqi Drilling Company at the Zubair oil field in Basra, Iraq.  July 5, 2022. REUTERS/Essam Al-Sudani/File
File image of workers checking drill pipes for the Iraqi Drilling Company at the Zubair oil field in Basra, Iraq. July 5, 2022. REUTERS/Essam Al-Sudani/File

By Shadia Nasralla

LONDON, Aug 8 (Reuters) – Oil prices rose from multi-month lows on Monday as concerns about weakening demand due to a deteriorating economic outlook outweighed some positive economic data from China and the United States. .

* Brent crude futures were down $1.54, or 1.6%, at $93.38 a barrel by 1128 GMT. US West Texas Intermediate crude fell $41.38, or 1.6%, to $87.63 a barrel.

* Brent prices for the immediate month reached their lowest level since February last week, falling 13.7% and registering their biggest weekly decline since April 2020, while WTI lost 9.7%, as the concern about a recession affecting oil demand weighed on prices.

* “Last week’s price action left no doubt that concerns around demand in the face of a recession have the upper hand over fears around supply. One could even say that the war premium it has evaporated,” said PVM analyst Stephen Brennock.

* Both contracts recovered some losses on Friday after job growth in the United States, the world’s top oil consumer, unexpectedly accelerated in July.

* On Sunday, China also surprised markets with faster-than-expected export growth.

* China, the world’s largest oil importer, brought in 8.79 million barrels per day (bpd) of crude in July, up from a four-year low in June but still 9.5 % less than a year before, according to customs data.

* In Europe, Russian exports of crude oil and petroleum products continued to flow in the face of the looming European Union embargo set to take effect on December 5.

* US gasoline demand continues to weaken despite falling pump prices, and stockpiles are building.

(Additional reporting by Florence Tan; Editing in Spanish by Ricardo Figueroa)





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