Industry and Energy

Home page

Industry and Energy

Oil slips as China benchmark rate cuts less aggressive than expected

20 June 2023 09:03 (UTC +04:00)

Oil prices slipped on Tuesday after China cut benchmark lending rates less than some expected, sowing further concern over the oil demand outlook in the world's largest crude importer, APA reports citing Reuters.

Brent crude was down 5 cents at $76.04 a barrel at 0310 GMT. U.S. West Texas Intermediate (WTI) crude for July was down 99 cents from Friday's close at $70.79. The July contract expires at the end of trade on Tuesday.

The more active WTI crude contract for August delivery was down 71 cents from Friday at $71.22 per barrel. There was no settlement in the WTI contract on Monday due to a public holiday in the United States.

On Monday, two policymakers at the European Central Bank argued for more rate hikes amid risks of higher inflation. Markets also await testimony from U.S. Federal Reserve Chair Jerome Powell later in the week for future rate clues.

Higher interest rates reduce appetite for spending and can drive oil demand down.